easy · Asset-Backed Securities clos
An analyst is comparing two CLOs. Deal A has a WARF of 2500 and Deal B has a WARF of 3100.
Which deal has a higher weighted-average credit quality?
- Deal A.
- Deal A, but only if its WAS is also higher than Deal B's.
- Deal B.
- They are equal because credit quality is determined by the Diversity Score, not WARF.
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