QUESTION 31 Which of the following best describes the original reason for the development of credit derivatives? A. Speculators wanted to make large bets on the movement in various bond instruments B. Commercial banks wanted to hedge their corporate loan books C. Insurance companies wanted to hedge against significant natural disasters (hurricanes, tornadoes, etc) O D. Investment banks wanted to hedge against the counterparty risk from other financial institutions QUESTION 32 Which of the following is considered a "High Yield" credit rating? BBB- Caa1 A- BBB- QUESTION 31 Which of the following best describes the original reason for the development of credit derivatives? A. Speculators wanted to make large bets on the movement in various bond instruments B. Commercial banks wanted to hedge their corporate loan books C. Insurance companies wanted to hedge against significant natural disasters (hurricanes, tornadoes, etc) O D. Investment banks wanted to hedge against the counterparty risk from other financial institutions QUESTION 32 Which of the following is considered a "High Yield" credit rating? BBB- Caa1 A- BBB