GIGAMIND

Folder:
115 CFA
File:
115.070.06.06 Fixed Income - Reading 47 - 6. Special Considerations of High-Yield, Sovereign, and Municipal Analysis

6. Special Considerations of High-Yield, Sovereign, and Municipal Analysis

j. explain special considerations when evaluating the credit of high yield, sovereign, and municipal debt issuers and issues.

Why are high-yield bonds issued?
High-yield bonds are issued by organizations that do not qualify for investment-grade ratings.

What are two types of municipal bonds?
- General obligation (GO) bonds depend on the general creditworthiness of a municipality to repay the debt.
- Revenue bonds support specific projects.


Source:
  • CFA