以下是引用youzizhang在2009-3-12 11:04:00的发言：
LOS a: Distinguish among default risk, credit spread risk, and downgrade risk.
Q1. Which of the following is NOT a component of credit risk?
A) Credit spread risk.
B) Default risk.
C) Interest rate risk.
Q2. Credit ratings measure which type of risk associated with credit obligations?
A) Credit risk.
B) Downgrade risk.
C) Default risk.
Q3. The risk that the borrower will fail to repay the credit obligation is referred to as:
A) default risk.
B) credit spread risk.
C) credit risk.
Q4. The risk that an issuer’s debt obligation will fall in value because the required risk premium for the debt obligation has increased is referred to as:
A) credit risk.
B) credit spread risk.
C) downgrade risk.
Q5. An unanticipated deterioration in the credit quality of an issuer that results in a decline in the price of the issue is referred to as:
A) downgrade risk.
B) credit risk.
C) default risk.
Q6. Brad Taylor is a portfolio manager for a small firm that caters to high net worth individuals. He invests substantial amounts of his clients’ assets in fixed incomes securities, while his partner deals primarily with his clients’ equity investments. Taylor’s particular areas of analytical expertise include corporate bonds, asset-backed securities (ABS), and foreign government bonds. Being in a small firm, Taylor is involved in every aspect of managing the fixed income portion of the portfolio, from the initial identification of a potential investment, to the analysis, and on to the purchase decision. In addition, he also performs an ongoing analysis of assets currently held in the portfolio.
As the size of the portfolio has grown over the past two years, Taylor has become increasingly aware of the fact that he needs to acquire additional support staff in order to adequately perform his fiduciary duties. He has recently hired a new trading assistant, Donald Johnson, whose prior position was at a firm that invested exclusively in equity securities. Johnson has not had much experience in the analysis of fixed income securities and realizes that there are some significant differences between the credit analyses of equities versus that of fixed income securities. He is trying to understand how to evaluate the credit quality of fixed income securities in the specific sectors of corporate bonds, ABS, and foreign government bonds. Taylor suggests that to begin, Johnson should review one of Taylor’s old fixed income textbooks, to become more familiar with the concepts. Johnson needs to be able to identify which key ratios are used in fixed income analysis, how to calculate them, and the how to interpret them. He is familiar with basic mechanics of a cash flow analysis of an equity investment, but needs to understand why and how cash flow from operations can affect the value of a fixed income security. In addition, Taylor expects Johnson to quickly have a strong working knowledge of each of the following areas: corporate bonds and the measurement of their capitalization and solvency; ABS and the factors that will determine an issue’s rating; and foreign government bonds and the economic and political risks that can affect their performance.
Johnson is not sure what is meant by a short-term solvency ratio. Which of the following ratios is a measure of short-term solvency?
A) Current ratio.
B) EBIT interest coverage ratio.
C) Total debt to capitalization ratio.
Q7. Johnson has read about the importance of coverage ratios in order to evaluate the credit risk of a corporate bond. Which of the following statements is most correct? Coverage ratios are used to:
A) judge the capital adequacy of liquid assets for meeting short-term obligations as they come due.
B) determine the capital adequacy of long-term assets to meet long-term debt obligations.
C) test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations.
Q8. Johnson asks Taylor to define a discretionary cash flow. Which of the following is the most correct? A discretionary cash flow:
A) may be spent at the company's discretion.
B) remains available after a company services its debt.
C) remains available to a company after it funds its operating requirements and capital expenditures.
Q9. Johnson turns his attention to ABSs. Which of the following is the least important factor considered by rating agencies in assigning a credit rating to ABS?
A) Quality of the seller/servicer.
B) Covenants of the lending agreement.
C) Cash flow stress and payment structure.
Q10. Taylor explains to Johnson that there are major differences between ABS and corporate bonds in terms of credit risk. Which of the following is a major difference? ABS have:
A) a greater predictability of cash flows due to the absence of operational risk.
B) a smaller predictability of cash flows due to the higher operational risk.
C) the same predictability of cash flows but a lower operational risk.
Q11. Taylor tries to explain the subtleties of foreign sovereign debt to Johnson. Which of the following is least likely a factor used in assessing the credit quality of a national government's local currency debt?
A) Monetary policy and inflation pressures.
B) Balance of payments and external balance sheet structure.
C) Income and economic structure.
[此贴子已经被作者于2009-3-12 11:04:55编辑过]
发表于 2009-5-15 12:55
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