The models that the credit rating firms (e.g.,Moody's,S&P,and Fitch) used to evaluate the risk of the various tranches of MBS debt and thereby assign a credit rating (e.g.AAA,AA-BB,or unrated) were
A) right on target,but only in the aggregate.
B) poorly specified.
C) superfluous,since the CDOs turned out to be backed by the full faith and credit of the U.S.Treasury.
D) super models,and while as a group they were not so good at evaluating credit risk,they made up for it with their good looks and impeccable fashion sense.
Correct Answer:
Verified
Q90: Which of the following are principles of
Q91: Who benefits from debt-for-equity swaps?
A)The creditor bank
B)The
Q92: So-called subprime mortgages were typically
A)mortgages granted to
Q93: So-called subprime mortgages were typically
A)not held by
Q94: With regard to creating money,
A)only central banks
Q95: Consider the position of a treasurer of
Q96: Proceeding the Asian crisis,
A)it may have been
Q97: Forward rate agreements can be used for
Q99: A decrease in the implied three-month LIBOR
Q100: The Brady Bond is named after
A)U.S.Treasury Secretary,Nicholas
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents