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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! |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain investment features of hedge funds and contrast them with other asset classes
describe investment forms and vehicles used in hedge fund investments
CFA® 2025 Level I Curriculum, Volume 5, Module 6.