Bond q

thepinkman · May 30, 2008, 2:35am

Analysis of the issuer’s business and operating risks is important to the analysis of A. Corporate bond credit risk B. Asset backed Securities credit analysis True/False?

mark · May 30, 2008, 2:38am

I guess it’s relative to what’s important. A True. B. not as important as A.

dinesh.sundrani · May 30, 2008, 2:39am

Q1. TRUE Q2. FALSE

bannisja · May 30, 2008, 2:40am

true hmm… if asset backed, maybe false?

mark · May 30, 2008, 2:41am

Actually, there are no business or operating risks with ABS, but you do have to look at the servicer…

thepinkman · May 30, 2008, 2:44am

Credit Analysis of assetbacked securities is FALSE. Which is completely ridiculous. I do analysis on these things and issuers are certainly considered. I mean it doesn’t mean as much as with straight corporates but it means something. To say its not important is just false.

Black_Swan · May 30, 2008, 2:45am

I agree, pinkman CFAI says no op risk, but joey, you, and now me all agree that op risk clearly exists.

dinesh.sundrani · May 30, 2008, 2:48am

I do not represent a credit rating agency, but this is how I would rate the importances of issues to be evaluated 1. Quality of Colateral 2. Issuers Oper Risk and Finan Risk 3. Servisor rating and capabilities