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Basic Question 0 of 5
Which C is generally not used by commercial banks when they perform sovereign debt credit analysis?
B. Collateral
C. Capacity
D. Covenants
A. Character
B. Collateral
C. Capacity
D. Covenants
User Contributed Comments 8
User | Comment |
---|---|
ssradja | Interesting. How about covenants? |
jmcarr02 | How could a country provide collateral... lol! I imagine a banker asking for bunch of road or an administrative building. |
CheeHong | I would imagine those are good collaterals. Just that we never knew when the national army will come storming in to seize them back again. |
TheHTrader | What does Character stand for? |
Sailor85 | Character is a measure of the borrower's past payment history. In consumer lending, it is normally evaluated by pulling a credit report. |
rocyang | Poor south americans... |
jonan203 | well, the tax payers and their future earnings are implied to be the collateral of US debt... |
chcarnes | unsecured = no collateral! |

Your review questions and global ranking system were so helpful.

Lina
Learning Outcome Statements
explain the financial reporting and disclosures related to financial instruments
CFA® 2025 Level I Curriculum, Volume 2, Module 3.