Question: 13. a. Why has the swap spread framework become a popular valuation yardstick in Europe for credit securities? b. Why might U.S. managers embrace the

13.

a. Why has the swap spread framework become a popular valuation yardstick in Europe for credit securities?

b. Why might U.S. managers embrace the swap spread framework for the credit asset class?

c. Compare the advantages/disadvantage of the nominal spread framework to the swap spread framework.

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