- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 47. Fundamentals of Credit Analysis
- Subject 6. Special Considerations of High-Yield, Sovereign, and Municipal Analysis
CFA Practice Question
The equity analysis approach is preferred by some analysts to evaluate the creditworthiness of ______.
A. Municipal bonds.
B. Sovereign bonds.
C. High-yield corporate bonds.
Explanation: This approach can be useful, as high-yield bonds are sometimes thought of as a "hybrid" between higher-quality bonds and equity securities.
User Contributed Comments 1
| User | Comment |
|---|---|
| danlan2 | High-yield corporate bonds are more risky than low-yield bonds, and are similar to equity. |