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.
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.
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.
Does a national government have much or little control over its ability to generate enough currency to meet its local currency and foreign currency obligations?
A)
Much control over both currencies.
B)
Little control over either currencies.
C)
Much control over one currency only.
A national government has more control over its ability to raise funds for local currency debt if it is willing to raise taxes or print money. A government has much less control in its ability to raise funds for foreign currency debt since it must purchase the foreign currency and has little control of its exchange rate.
Which of the following factors least likely represents an economic risk that Standard and Poor's Corporation would consider in the rating of a sovereign debt credit?
A)
natural resource endowments.
B)
living standards.
C)
external security risks.
External security risk is a political risk factor, not an economic risk factor.
Which of the following factors least likely represents an economic risk that Standard and Poor's Corporation would consider in the rating of a sovereign debt credit?
A)
natural resource endowments.
B)
living standards.
C)
external security risks.
External security risk is a political risk factor, not an economic risk factor.
发表于 2012-4-2 16:06
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