Where is all this crap coming from? Have I missed a complete SS here?, I got 0/4 for these. And am GROUND ZERO on my motivation, better hit the bed before I start scoring in negatives. 
When analyzing the credit risk of a holding company, it is important to understand: A) the lines of succession. B) the diversity of the subsidiaries. C) the corporate structure. D) the accounting methods used When analyzing the credit risk of the holding company, it is critical for the analyst to focus on all of the following EXCEPT: A) the cash flows generated by the subsidiary. B) how the cash flows move from the subsidiaries to the parent company. C) how cash flows move between subsidiaries. D) ratio analysis of the parent company. Which of the following does NOT represent special analyst considerations for high-yield corporate bonds? A) Cost of capital analysis. B) Analysis of debt structure. C) Corporate structure analysis. D) Covenant analysis. Which of the following debt obligations exposes the firm to the risk of illiquidity due to rising interest rates? A) Subordinated fixed-rate debt. B) Bridge loans. C) Payment-in-kind bond. D) Reset notes.
C C A D All pure guesses. T/G
C C or A A D
c, c, a, b
Sh1t, changing 4 to d
i get the same as the above. where’s this from? i think i may have seen these.
C, C, B, D
dinesh before you pass out post the ans. please!
I think this is from one of the SS 14 Reading 55 quizzes? I have CCAD. I remember missing the second one because i read it too fast.
B, C, A, D
Pretty sure about A,D on 3,4. Totally blank on the holding company ones.
Correct Answers from Schweser Qbank C D A D damn…had actually done these before…still got half wrong wrong…
Sorry to keep you waiting guys… I just got back from a 15-page cage match with FI one-on-one and knocked it all over the place. I correctly understand now why the answers are C, D, A, D. You all were very close to being 4/4 but not quiet reached that in full.
Thanks Dinesh! if possible can you also post the explanation.
Which of the following debt obligations exposes the firm to the risk of illiquidity due to rising interest rates? A) Subordinated fixed-rate debt. B) Reset notes. C) Bridge loans. D) Payment-in-kind bond. Your answer: B was correct! A reset note is a debt obligation where the coupon interest rate is reset periodically. As a result, the analyst needs to assess the impact that rising interest rates would have on the firms ability to honor these security contracts. A payment-in-kind bond is where a high yield issuer has the option to either pay interest in cash or pay the equivalent of interest with another bond with the same coupon rate. Subordinated fixed-rate debt is debt that is paid after other more senior debt is paid off. A bridge loan is a short-term loan made in anticipation of intermediate-term and long-term financing. When analyzing the credit risk of the holding company, it is critical for the analyst to focus on all of the following EXCEPT: A) the cash flows generated by the subsidiary. B) ratio analysis of the parent company. C) how the cash flows move from the subsidiaries to the parent company. D) how cash flows move between subsidiaries. Your answer: B was correct! The ratio analysis of the parent company provides little insight into the financial health of the company since the cash flows come from the subsidiary units of the parent company. When analyzing the credit risk of a holding company, it is important to understand: A) the lines of succession. B) the diversity of the subsidiaries. C) the accounting methods used. D) the corporate structure. Your answer: D was correct! It is important to understand the corporate structure so the analyst can determine how cash is passed from subsidiaries to the parent company and to other subsidiaries. Which of the following does NOT represent special analyst considerations for high-yield corporate bonds? A) Cost of capital analysis. B) Analysis of debt structure. C) Corporate structure analysis. D) Covenant analysis. Your answer: A was correct! Special analyst considerations for high-yield corporate bonds include an analysis of debt structure, corporate structure, covenants, and equity.