__________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).
D
Provisioning Coverage Ratio (PCR) is essentially the ratio of provisioning to ______ and indicates the
extent
of funds a bank has kept aside to cover loan losses.
B
Step up upon feature will lead to
B
The _______ cycle is the length of time between the companys outflow on raw materials and the
manufacturing expenses and the inflow of cash from the sale of goods.
D
Which of the following factor is considered while undertaking management evaluation?
D
Short term rates are determined by____________
B
Which of the following is false in case of credit enhancements?
A
Which of the following is NOT a conceptual definition of credit risk on which credit models are
based?
B
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 of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of
legal and structural issues.
Which of the above statements is correct?
D
Stand by letter of credits are typically taken as credit enhancement for___________
D