When global capital markets collectively react to international events like Enron's collapse,it is common to find:

Question

Quizplus · Accepted Answer

Enron's collapse created a trust deficit in the credit markets, and investors became more risk-averse. As a result, companies with investment-grade credit ratings, but not AAA grades, faced a reduction in their ability to raise capital. This sort of risk aversion is typical when negative events happen in capital markets.

When Global Capital Markets Collectively React to International Events Like