Question #3
Reading: Reading 28 Credit Analysis Models
PDF File: Reading 28 Credit Analysis Models.pdf
Page: 1
Status: Incorrect
Correct Answer: B
Your Answer: B
Question
Which of the following factors is least likely a determinant of term structure of credit spreads?
Answer Choices:
A. Existence of off-balance sheet liabilities
B. Equity market volatility
C. Financial conditions in the market
Explanation
Term structure of credit spread is influenced by credit quality, financial conditions, market
demand and supply, and equity market volatility.