Phase 3 – Valuation of Bonds and Derivatives

Explain the four Cs of credit analysis in the context of the corporate bond market. Include in your answer a complete explanation of the following: NEEDS TO BE 700-1,000 WORDS IN A WORD DOCUMENT- 3 REFERENCES APA FORMAT-

• Capacity
  • Profiting ratios
  • Debt and coverage analysis
  • Cash flows
• Collateral
  • Types
  • Title
• Covenants
  • Types
  • Effects
• Character
  • Corporate governance
  • Agency