Answer 49

wlakelihg economic conditions. C. a period of high demand for bonds. 46. Credit spreads are most likely to widen: A. in a strengthening economy B. as the credit cycle improves. C. in periods of heavy new issue supply and low borrower demand. 47. Which of the following factors in credit analysis is more important for general obligation non-sovereign government debt than for sovereign debt? A. Per capita income B. Power to levy and collect taxes C. Requirement to balance an operating budget 48. In contrast to high-yield credit analysis, investment-grade analysis is more likely to rely on A. spread risk. B. an assessment of bank credit facilities. C. matching of liquidity sources to upcoming debt maturities ich of the following factors would best justify a decision to avoid investing in a country's sovereign A. Freely floating currency B. A population that is not growing C. Suitable checks and balances in policymaking - 49. Wh debt