With the information provided, what is the most appropriate credit risk mitigation technique in this case?
A. Implement a netting scheme.
B. Use credit triggers.
C. Sell credit default swaps on ZTM.
D. Increase collateral.
Answer:D
With the information provided, what is the most appropriate credit risk mitigation technique in this case?
A. Implement a netting scheme. B. Use credit triggers. C. Sell credit default swaps on ZTM. D. Increase collateral.
Explanation: Increasing collateral would effectively reduce current credit exposure depending on the contract