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Basic Question 1 of 4

The credit quality of a commercial property portfolio is determined by the credit quality of the ______.

A. underlying tenants
B. underlying properties
C. management company

User Contributed Comments 2

User Comment
thebkr777 Can anyone explain?
FRAbyFRA Think of credit quality in the context of a bond. If the bond issuer has low credit quality, it becomes more likely that coupon payments won't be made. The same applies to rent payments from commercial property tennants, which provide the "fixed income" portion of the property's return.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe how value added by active management is measured;

CFA® 2025 Level II Curriculum, Volume 6, Module 37.