CFA Practice Question
Of the 4 C's of credit, which of the following is not correct?
A. Covenants analysis examines the restrictions that bond and debt covenants impose on the borrower.
B. Capacity analysis examines the ability of the issuer to repay based on an analysis of financial statements, industry trends, regulatory environment, basis operating and competitive position, etc.
C. Customization analysis examines how well matched at the issuers' assets to the liquidity needs of the buyers.
Explanation: The 4 C's of credit analysis does not include 'customization'.
User Contributed Comments 3
| User | Comment |
|---|---|
| jann | it's character, capacity, conditions and capital isn't it? |
| dand1 | covenants is one of them |
| zzhumanov | capacity, collateral, covenants, character |