C
   
   Credit Enhanced Debt Securities
   















 

C

Credit Enhanced Debt Securities

Bonds or notes with special investor protection that gives them a better credit standing than ordinary debt of the issuer would have. To obtain enhanced credit, an issuer may pay a guarantor or endorser for a letter of credit or a surety bond which lends the guarantor's higher credit to the issuer. The purpose of credit enhancement is to achieve a lower net borrowing cost.

Glossary * C