Studies have suggested that credit spreads in the market have been observed to be greaterthan what can be justified by default and recoveryrates. Explain how by quantifying liquidityspreads, one can obtain a truer measure of creditspreads.
Answer to relevant QuestionsWhat does a Barclays Capital Liquidity CostScore of 1.2 mean? What is the motivation for a new-issue swap trade? Why must an immunized portfolio be rebalanced periodically? What are the risks associated with fundinggap risk? If a defined benefit pension plan has liabilitiesthat are interest-rate sensitive and the plan sponsorallows investment in a portfolio of commonstocks, can you determine what will happen to itsfunding gap if interest rates ...
Post your question