AIWMI CCRA-L2 Certified Credit Research Analyst - Level 2 CCRA - Level 2 Exam Practice Test

Statement 1: The Yields on the MBS PTCs are normally higher than the yields on the corporate bonds of similar ratings.

Statement 2: The reason for difference in yields on the corporate bonds and similarly rated PTCs is on account of the optionality in the PTC, the unfamiliarity of the structure and uncertainties in respect of legal and structural issues.

Which of the above statements is correct?

Stand by letter of credits are typically taken as credit enhancement for___________

Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:

Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

Based on the common size statement analysis which of the following statement regarding employee cost is correct?

An increase in the salaries of the bank employees due to new bank employee pay commission implemented by the Central Government will lead to deterioration of which of the following ratios:

A: Cost to Income Ratio

B: Net Interest Margin

C: Core Spread

Which of the following is a factor considered while evaluating resources profile for rating of bank?

Risk in CDS price is reflective of