(a) State the difference forward rate agreement and swaps. [5 marks]

(b) Explain the meaning of sovereign ceiling and describe how an investor can measure sovereign risk

[8 marks]

(c) list and explain risks of issuing floating rate CDO tranches and fixed rate CDOs.

[6 marks]

(d) Describe and evaluate the role of credit rating agencies (CRAs) before, during and after the global credit crisis of 2008. [10 marks]