NO.PZ2023032703000065
问题如下：
Which of the following outcomes is most likely if the junior analyst revises the bond’s original recovery rate higher?
选项：
A.An increase in the bond’s POD
A decrease in the bond’s POD
A decrease in the bond’s credit spread
解释：
C is correct. An increase in a bond’s recovery rate will lower the loss severity, or LGD, because LGD = (1-RR). Recall the simple one-period relationship between credit spreads, LGD, and the POD as Spread≈LGD×POD. A lower LGD will result in a lower spread.
为什么这题可以假设POD不变。
