Podcast
Questions and Answers
Which factor is considered by practitioners when analyzing securities backed by general consumer/credit card loans?
Which factor is considered by practitioners when analyzing securities backed by general consumer/credit card loans?
- Credit scores of individual borrowers
- Societal risks such as discriminatory lending (correct)
- Interest rates in the consumer lending market
- Technological advancements in credit card systems
What is one limitation of quantifying ESG issues in structured credit analysis?
What is one limitation of quantifying ESG issues in structured credit analysis?
- It may not help identify mispriced prepayment assumptions (correct)
- It may not consider societal risks
- It may not assist with monitoring the performance of the deal
- It may not accurately measure the intrinsic value of securities
What does qualitative analysis in structured credit analysis focus on?
What does qualitative analysis in structured credit analysis focus on?
- Calculating the intrinsic value of securities
- Thorough due diligence of parties to the transaction (correct)
- Monitoring interest rates in the market
- Analyzing credit card transaction data
Which of the following is a potential impact of ESG factors on a company's book value and earnings?
Which of the following is a potential impact of ESG factors on a company's book value and earnings?
Which factor may lead a company to decrease or increase its future capital expenditure?
Which factor may lead a company to decrease or increase its future capital expenditure?
How do practitioners adjust the beta or discount rate in company valuation models to reflect ESG factors?
How do practitioners adjust the beta or discount rate in company valuation models to reflect ESG factors?
Which approach is commonly used to analyze ESG issues in sovereign credit analysis?
Which approach is commonly used to analyze ESG issues in sovereign credit analysis?
What factors are typically considered in credit analysis for municipal bonds?
What factors are typically considered in credit analysis for municipal bonds?
How can chronic social and environmental problems affect the credit quality of municipal bonds?
How can chronic social and environmental problems affect the credit quality of municipal bonds?
What additional ESG factors may be integrated into credit analysis for project revenue bonds?
What additional ESG factors may be integrated into credit analysis for project revenue bonds?
Which of the following aspects should be considered when analyzing ESG risks in fixed-income investing?
Which of the following aspects should be considered when analyzing ESG risks in fixed-income investing?
What is the main approach used by practitioners when assessing the impact of ESG issues on investment decisions?
What is the main approach used by practitioners when assessing the impact of ESG issues on investment decisions?
Which of the following is true about the impact of ESG issues on corporate bond prices and share prices?
Which of the following is true about the impact of ESG issues on corporate bond prices and share prices?
What do practitioners use materiality/sustainability frameworks and company ESG research for?
What do practitioners use materiality/sustainability frameworks and company ESG research for?
What factors do Equities and Fixed Income depend more strongly on?
What factors do Equities and Fixed Income depend more strongly on?
What types of securities are included in the fixed-income market?
What types of securities are included in the fixed-income market?
Why are practitioners just starting to consider how to systematically integrate ESG factors into structured credit analysis?
Why are practitioners just starting to consider how to systematically integrate ESG factors into structured credit analysis?
What role does ESG analysis play in determining the true risk-adjusted credit profile of a securitization?
What role does ESG analysis play in determining the true risk-adjusted credit profile of a securitization?
According to the text, why is the adoption of ESG integration in sovereign debt less widespread compared to corporate bonds?
According to the text, why is the adoption of ESG integration in sovereign debt less widespread compared to corporate bonds?
What are some examples of ESG data sources used by sovereign debt investors?
What are some examples of ESG data sources used by sovereign debt investors?
Why do practitioners believe that ESG integration is not applicable to sovereign debt?
Why do practitioners believe that ESG integration is not applicable to sovereign debt?
Which type of issues more frequently affect sovereign debt prices according to the CFA-PRI survey?
Which type of issues more frequently affect sovereign debt prices according to the CFA-PRI survey?
