'Credit wrapping' is a credit enhancement practice that allows lower-rated borrowers to issue bonds at a lower yield.

Name: 'Credit wrapping' is a credit enhancement practice that allows lower-rated borrowers to issue bonds at a lower yield.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Credit wrapping involves a third-party providing a guarantee or insurance to the bond, which results in a higher credit rating and lower yield for the borrower. This allows lower-rated borrowers to access credit at a more affordable cost.

'Credit Wrapping' Is a Credit Enhancement Practice That Allows Lower-Rated