- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 47. Fundamentals of Credit Analysis
- Subject 6. Special Considerations of High-Yield, Sovereign, and Municipal Analysis
CFA Practice Question
Rank the sources of liquidity from strongest to weakest.
II. Bank credit facilities
III. Operating cash flow
I. Equity issuance
II. Bank credit facilities
III. Operating cash flow
A. III, I and II
B. II, III and I
C. III, II and I
Explanation: Equity issuance may not be a reliable source of liquidity because an issuer may be private or market conditions may be poor.
User Contributed Comments 1
| User | Comment |
|---|---|
| tmeeker | Can't you tap a bank loan overnight whereas funds from operation can take months with long cash conversion cycles? |