Homework Chapter 20 - Chapter 20 Relative Value...

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Chapter 20 – Relative Value Methodologies for Global Credit Bond Portfolio Management 1) Although all are presented as rationales for secondary trading, which is probably the most common rationale? a. New Issue swaps b. Credit-upside trades c. Credit-defense trades d. Yield/Spread pick up trades 2) There is an increase in secondary market trading based on cash flow reinvestment when: a. The yield curve is inverted b. The yield curve is relatively flat c. The yield curve is expected to be downward sloping d. Portfolio cash flows occur because the primary supply is short or the composition of the primary market is not compatible with portfolio objectives 3) Although the practice is declining, it is common for practitioners to compare the value of mortgage-backed and US agency securities with investment grade corporate securities. Which of the following spreads is used for this purpose? a. Swap Spreads b. Static Spreads c. Nominal Spreads d. Option-adjusted Spreads 4) Which of the following is NOT considered a spread tool to be used with spread analysis? a.
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This note was uploaded on 04/04/2012 for the course ECON 313 taught by Professor India during the Spring '12 term at University of San Francisco.

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Homework Chapter 20 - Chapter 20 Relative Value...

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