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Basic Question 2 of 5
Non-sovereign bonds usually trade at a higher yield than sovereign bonds with similar characteristics because non-sovereign bonds have higher ______.
II. interest rate risk
III. liquidity risk
I. credit risk
II. interest rate risk
III. liquidity risk
User Contributed Comments 2
| User | Comment |
|---|---|
| maryprz14 | higher credit risk? then in the notes, non-sovereign bond receives higher credit rating due to low default rate... often higher yield than sovereign bonds. I'm so confused. |
| khalifa92 | true non-sovereign has low default risk but in comparison to sovereign you cant just give the same yield thus it's more (small percentage) due to credit risk and liquidity. |
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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.