问题如下：
Regarding inter-market trades in general her notes indicate:
IV. Inter-market trades should be assessed based on currency-hedged returns.
V. Anticipated changes in yield spreads are the primary driver of inter-market trades.
VI. Whether a bond offers a relatively attractive return depends on both the portfolio’s base currency and the currency in which the bond is denominated.
Which of Winslow’s statements about inter-market trades is incorrect?
选项：
A. Statement IV
B. Statement V
C. Statement VI
解释：
C is correct.
Winslow’s Statement VI is incorrect. Due to covered interest arbitrage, the relative attractiveness of bonds does not depend on the currency into which they are hedged for comparison. Hence, the ranking of bonds does not depend on the base currency of the portfolio.
A is incorrect because Winslow’s Statement IV is correct. Inter-market trades should be assessed on the basis of returns hedged into a common currency. Doing so ensures that they are comparable. Neither local currency returns nor unhedged returns are comparable across markets because they involve different currency exposures/risks.
B is incorrect because Winslow’s Statement V is correct. The primary driver of inter-market trades is anticipated changes in yield differentials. Over horizons most relevant for active bond management, the capital gains/losses arising from yield movements generally dominate the income component of return (i.e., carry) and rolling down the curve. Hence, expectations with respect to yield movements are the primary driver of inter-market trade decisions.
Inter market可以hedge也可以不hedge,那么为什么收益依赖于hedge return呢？