__________Strategy consists of buying a bond with maturity longer than the investment horizon (for investor) or buying a long-maturity bond with short-term funding through repo (for speculator). A. Barbell, Ladder and Butterfly B. Yield Spread Anticipation C. Rate Anticipation with…
Which of the following factor is considered while undertaking management evaluation? A. All of the other options B. Corporate Strategy C. Performance of group concerns D. Past track record
Short term rates are determined by____________ A. All of the other options B. Liquidity position caused by seasonal demand supply for credit C. Foreign portfolio investment inflows and outflows D. Bunching of tax and government payments
Which of the following is false in case of credit enhancements? A. It reduces the default risk of the borrowing entity for the lender, thereby deteriorating the overall credit worthiness of the borrower B. Credit enhancement could be implicit or…
Which of the following is NOT a conceptual definition of credit risk on which credit models are based? A. Default Mode Paradigm B. Value-at-Risk paradigm C. Mark-to-Market Paradigm
Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similar ratings. Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is on account…
Stand by letter of credits are typically taken as credit enhancement for___________ A. Commercial Paper B. Long term Bond issues C. Long term debenture issues D. Bank debt
Which of the following is not an importance of the sovereign rating? A: To arrive at cost of lending to a country B: To set lower floor for the rating of the corporate and banks of the countries on international…
In a weakening economy, which of the following is least accurate? A. Interest costs go up and create refunding risk for those who have bonds maturing which need to be rolled over. B. Interest costs go up and create rate…
Butterfly strategy is a combination of A. Ladder and Barbell on the same market sides B. Barbell and Bullet on the opposite market sides C. Barbell and Bullet on the same market sides D. Ladder and barbell on the opposite…