Definition for : Diversity score
GLOSSARY LETTER
Designates the statistical measure created by Moody's in relation with the level of Risk Diversification achieved by a portfolio composed of different Assets, and in particular a CLO, CBO, CDO or CFO Securitisation. The diversity score is highest where (i) the Assets are decorrelated, and (ii) the portfolio is not concentrated, but - to the contrary - very granular.
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