When global capital markets collectively react to international events like Russia's default on its sovereign

Question

A) that there is no impact on multinational companies' ability to raise capital.

B) a reduction in capital available to companies with investment grade credit ratings.

C) that Wall Street firms are so diversified that they are not affected by this event.

D) All of the above are true.

Answer 1

B.  When the market perceives credit as riskier, credit markets lose liquidity.