What is a buyback obligation?

Text reads What is a buyback obligation? beside a 3D blue pie chart and a rising blue line graph icon on a white background.

A buyback obligation is a credit enhancement given by either the lending company or another entity of a lending company group to the loan security issuer for a particular loan. In cases where the borrower is late, the lending company is directly obliged to buy back the loan from the issuer at nominal value plus […]