NO.PZ2016082405000089
问题如下：
Which of the following statements describe part of the risk mitigation process for a collateralized debt obligation (CDO)?
I. Default risk is restructured in such a way that previously lower-rated issues can be re-formulated into highly rated debt instruments.
II. The equity tranche has no certain return and bears the highest level of default risk.
选项： I only.
II only.
C.Both I and II.
D.Neither I nor II.
解释：
C The default risk in a CDO is structured through various tranches in such a way that a pool of assets that were once lower rated could be rated after the securitization process. The equity tranche is the most junior tranche. Therefore, it offers the highest return potential but with no certain return. The equity tranche also bears the highest level of default risk.
Default risk is restructured in such a way that previously lower-rated issues can be re-formulated into highly rated debt instruments.
这是什么意思？不懂
