Ashcraft, Adam B. (contributor); Schuermann, Til (contributor) - 2008
essential component of
credit risk transfer, as it protects investors from bankruptcy of the originator or arranger.
Moreover … the actual historical loss experience of the servicer into an
amount attributable to the underlying credit risk of the …
instrument to be included in a risk class, but importantly, it is an opinion only about credit risk;
we discuss credit ratings …