________ is more commonly used as a form of credit enhancement in subprime deals than in prime deals.

Question

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Overcollateralization involves pledging assets with a value greater than the amount of debt issued. This is a common form of credit enhancement in subprime deals to offset the higher risk associated with borrowers who are more likely to default. Prime deals, on the other hand, typically have a lower risk of default and may not require as much credit enhancement, making overcollateralization less common.

________ Is More Commonly Used as a Form of Credit