- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 47. Fundamentals of Credit Analysis
- Subject 1. Credit Risk
CFA Practice Question
For an A- rated corporate bond that has deteriorating fundamentals, but is expected to remain investment-grade, the greatest risk is most likely ______.
A. liquidity risk
B. default risk
C. credit spread risk
Explanation: The bond is expected to see a widening of spreads as a result of deteriorating fundamentals and a potential downgrade but still remains investment-grade.
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