- CFA Exams
- CFA Level I Exam
- Study Session 13. Fixed Income (2)
- Reading 35. Credit Analysis Models
- Subject 5. Interpreting changes in a credit spread
CFA Practice Question
The chief microeconomic factor that is captured by the credit spread is ______.
A. expected loss from default
B. liquidity
C. taxation
Explanation: This is also the focus of the LOS. The arbitrage-free framework is used to examine the connections between the credit spread and the expected loss from default.
User Contributed Comments 0
You need to log in first to add your comment.