Question: (a) Explain forward rate agreement and swaps. (b) Explain the meaning of sovereign ceiling and describe how investors measure sovereign risk (c) list and explain

(a) Explain forward rate agreement and swaps.

(b) Explain the meaning of sovereign ceiling and describe how investors measure sovereign risk

(c) list and explain risks of issuing floating rate Collateralised Debt Obligation tranches and fixed rate Collateralised Debt Obligation

(d) Describe and evaluate the role of credit rating agencies before, during and after the global credit crisis of 2008.

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