Final answer:
The closed-end bond fund and the exchange-traded note (ETN) are securities that are based on the credit rating of the issuer.
Step-by-step explanation:
The securities that are based on the credit rating of the issuer are the closed-end bond fund and the exchange-traded note (ETN).
A closed-end bond fund is a mutual fund that invests in a portfolio of bonds. The credit rating of the bonds in the portfolio determines the risk level of the fund. Higher-rated bonds have lower credit risk, while lower-rated bonds have higher credit risk.
An exchange-traded note (ETN) is a debt security that tracks the performance of an underlying index or asset. The credit rating of the issuer determines the credit risk of the ETN.