List of Securities with Contingent Claim Risk

CFA Level III
#1

Contingent claim is due to the nature of the “liabilities” themselves. If there is a claim, and you do not meet it, there is a contingent claims risk.

So list of securities with CCR is:

any bond with an option

MBS

any mortgage backed bond.

List of securities with no CCR is:

option free Corporate Bonds

TSY’s

is that correct?

#2

can someone pls confirm the above is correct?