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Canadian Securities Course (CSC) Practice Exam · Question

Which of the following fixed-income securities would typically have the highest credit risk?

Corporate bonds from highly leveraged companies carry more credit risk than government bonds or those backed by government agencies due to a higher likelihood o

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Question: Which of the following fixed-income securities would typically have the highest credit risk?

Answer options: ✅ A corporate bond from a highly leveraged company

  • A Government of Canada bond
  • A provincial bond from Ontario
  • A mortgage-backed security issued by CMHC

Correct answer: A corporate bond from a highly leveraged company

Explanation: Corporate bonds from highly leveraged companies carry more credit risk than government bonds or those backed by government agencies due to a higher likelihood of default.

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