Knowledge Base

← Financial Instruments, Crypto-Assets, and Their Risks

Questions

Which ratio limits the holding of a single issuer's debt to 10%?

Concentration ratio
Liquidity ratio
Solvency ratio
Leverage ratio

Which category of issuers presents low to moderate risk according to rating agencies?

Speculative-grade issuers (high yield)
Investment-grade issuers
Issuers rated D or C
Unrated issuers

What is the maximum exposure limit for a sovereign issuer guaranteed by the European Union?

5%
10%
35%
100%

The average historical default rate for speculative-grade issuers is approximately 4% per year.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Issuer rated AAA by S&P
Issuer rated BB+ by Fitch
Issuer rated Ba1 by Moody's
Categories:

Low to moderate risk

High risk

Credit Default Swaps (CDS)

Click to see answer

A presumption of significant influence exists when the holding exceeds 20% of voting rights.

True
False

According to Article 321-80 of the AMF General Regulation, what is the main requirement for credit risk assessment for UCITS?

Rely solely on credit rating agency ratings
Develop an internal assessment methodology
Rely solely on the issuer's financial fundamentals
Ignore external ratings