Which of the following is least likely a factor used in assessing the credit quality of a national government's local currency debt?
A)
Income and economic structure.
B)
Monetary policy and inflation pressures.
C)
Balance of payments and structure of the external balance sheet.
In assessing the credit quality of local currency debt, only domestic government policies that emphasize fostering or impeding timely debt service are considered. Only for foreign currency debt will credit analysis focus on the interaction of domestic and foreign government policies as measured by a country's balance of payments and the structure of its external balance sheet.
A very similar analysis is required for which two types of debt?
A)
Corporate bonds and asset-backed securities.
B)
Municipal bonds and sovereign debt.
C)
Sovereign debt and corporate bonds.
The analysis of sovereign debt is actually very similar to that of corporate debt. Both are concerned with character, capacity, and capital as well as availability and the quality of financial reporting. Municipal bond analysis requires specialized analysis of rate covenants and priority-of-revenue claims.
The assessment of which of the following types of debt require that the analyst use only qualitative factors, only quantitative factors or both qualitative and quantitative factors?
A)
Corporate bonds - both; sovereign debt - both; municipal debt - quantitative.
B)
Corporate bonds - both; sovereign debt - qualitative; municipal debt - quantitative.
C)
Corporate bonds - both; sovereign debt - both; municipal debt - both.
Corporate, sovereign, and municipal debt all require quantitative and qualitative elements of analysis.
发表于 2012-4-2 16:45
| 
