An agreement where a party with a lower credit rating enters into an agreement to exchange interest payments with a borrower having a higher credit rating is known as:

Name: An agreement where a party with a lower credit rating enters into an agreement to exchange interest payments with a borrower having a higher credit rating is known as:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A quality swap is an agreement where parties with different credit ratings exchange interest payments, often to take advantage of differing credit spreads.

An Agreement Where a Party with a Lower Credit Rating