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Basic Question 0 of 2
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
calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data
calculate and interpret portfolio standard deviation
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated
CFA® 2026 Level I Curriculum, Volume 2, Module 1.