A financial analyst is considering the likelihood that an emerging market sovereign issuer of US dollardenominated bonds

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A financial analyst is considering the likelihood that an emerging market sovereign issuer of US dollar–denominated bonds is able to meet its interest payments over the next 12 months. Which of the following financial ratios is most appropriate to assess the sovereign borrower’s liquidity position?

A. Government budget deficit/GDP

B. External debt/GDP

C. Currency reserves/GDP

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Related Book For  answer-question

Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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