- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 2. Investors and Other Stakeholders
- Subject 1. Financial Claims of Lenders and Shareholders
CFA Practice Question
Which groups usually don't have covenant protection?
II. preferred share holders
III. junior debt holders
IV. unsecured lenders
I. common share holders
II. preferred share holders
III. junior debt holders
IV. unsecured lenders
Correct Answer: I and II
Unsecured and junior debt investors can still have certain covenant protection.
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