- 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
Which statement(s) is (are) true?
I. High-yield companies may borrow money in the high-yield commercial paper market, although their borrowing cost will be much higher than investment-grade companies.
II. Sovereign defaults never happen.
Correct Answer: Both are false.
I. There is no high-yield commercial paper market.
II. A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full.
User Contributed Comments 3
User | Comment |
---|---|
praj24 | Greece!!!! |
sriera | and every country in south america or africa! |
Vlz2103 | all countries. eventually... |