The tests a credit rating agency performs to gauge the effect of changing economic conditions to see how it affects the ability of the SPV to pay off its securities is best described as:

Question

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Stress tests are specifically designed to evaluate how changing economic conditions might impact the ability of a Special Purpose Vehicle (SPV) to meet its obligations, including the repayment of securities. These tests simulate various adverse scenarios to assess the resilience of the SPV's financial structure.

The Tests a Credit Rating Agency Performs to Gauge the Effect