- CFA Exams
- CFA Level I Exam
- Study Session 15. Fixed Income (2)
- Reading 47. Fundamentals of Credit Analysis
- Subject 2. Seniority Ranking and Priority of Claims
CFA Practice Question
Higher priority of claim means ______.
II. higher recovery rate
III. lower loss severity
I. lower probability of default
II. higher recovery rate
III. lower loss severity
Correct Answer: II and III
Higher priority of claim does not affect the probability of default.
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