easy · FRM Part 2 Current Issues
Formula-and-meaning check before application in Current Issues.
Within Current Issues — Private Markets & Private Credit, which statement correctly describes Direct lending?
- contractual test that must be met periodically while debt remains outstanding
- nonbank lending negotiated privately with a borrower
- additional expected return demanded for limited ability to trade or exit
- uncertainty from infrequent prices and model-dependent private valuations
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