Credit Analysis for Government Issuers

Free CFA Level I lesson in Fixed Income. 12 min read, ~1,769 words.

Local-currency sovereign debt is rated higher than foreign-currency debt of the same issuer because the sovereign can print its own currency. Five sovereign qualitative pillars: institutional, political, economic, fiscal flexibility, monetary flexibility. Key sovereign quantitative metrics: debt/GDP, deficit/GDP, interest/revenue, current account, and reserves/short-term external debt. General obligation (GO) bonds are...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• credit analysis government issuers

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