Question: 1. Why does the interest rate difference between AAA and BBB rated bonds increase during economic downturns? 2. How has the development and increasing use

1. Why does the interest rate difference between AAA and BBB rated bonds increase during economic downturns? 2. How has the development and increasing use of securitization impacted the level and types of risks that Banks bear? 3. Which of the theories of the term structure of interest rates do you believe offers the best explanation of their behavior

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