Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 1 of 9
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
describe funding choices by sovereign and non-sovereign governments, quasi-government entities, and supranational agencies
CFA® 2025 Level I Curriculum, Volume 4, Module 5.