The phrase
"credit enhancement" refers to actions or measures taken to improve the creditworthiness or perceived reliability of a borrower or their financial obligations. It helps reduce the risk associated with lending money or investing in such obligations by providing additional security or collateral. This can include the use of guarantees, letters of credit, insurance, or other forms of protection that increase the likelihood of repayment. Overall,
credit enhancement helps to make borrowers more attractive to lenders or investors.
Full definition