2017 Fall 22c
Say the event we suggested was the credit risk associated with insolvency of an annuity company for a structured settlement.
A potential ripple effect would be the forced liquidation or sale of assets. A potential corrective management action would be the sale of those assets and reinvestment strategy.
Would this be acceptable or is would we lose marks for using the sale of assets as both the ripple effect and the management action?
Comments
Yes sir that is fine. They literally list selling or reinvesting assets as a possible strategy