Which scenario might prompt hamilton to bypass a specific


Hamilton manages the portfolios of wealthy individuals. Several of her clients have investments in asset-backed securities to increase the yield on their portfolio. Hamilton is reviewing possible scenarios that potentially would have a negative impact on a credit rating agency's independence and objectivity related to their rating of the ABS issues. Which scenario might prompt Hamilton to bypass a specific issue due to its rating?

A. The only rating agency following a specific security also advised in structuring the product, which was not disclosed by the firm.
B. The sponsoring firm paid all major rating agencies a flat fee to rate their new issue.
C. One rating agency included scenarios that went beyond the historical norms for expected defaults of the assets to determine the risks of the security and its rating.

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