问题如下:
Petit observes that credit spread levels for bonds are currently higher than normal, and she recommends that the firm increase its investment in high-yield bonds. She mentions three reasons for increasing high-yield bond exposure.
■■Reason 1: The portfolio’s liquidity will improve.
■■Reason 2: Defaults on high-yield bonds will be relatively low.
■■Reason 3: The firm’s view is that economic growth will be greater than the consensus forecast.
Which reason best supports Petit’s recommendation to increase the firm’s investment in high-yield bonds?
选项:
A.Reason 1
Reason 2
Reason 3
解释:
C is correct.
Better-than-expected economic growth is typically associated with narrower credit spreads and lower default rates for high-yield bonds.
请问选项B里面的Defaults on high-yield bonds will be relatively low.说明违约的可能性将来会变低,所以增加high yield bond,为什么不对的?