NO.PZ2021120102000027
问题如下:
Which of the following regarding the shape of the credit spreadcurve for high-yield issuers is most accurate?
选项:
A. High-yield credit spread curves change shape more over the cyclethan investment-grade ones do and usually invert during the peak phase.
B. Investors should exercise caution in interpreting credit spread curve shape for distressed debt issuers because their bonds tend to trade on a price rather than credit spread basis as the likelihood of default increases.
C. High-yield credit spread curves often invert because of the empirical observation that DTS is the best way to measure high-yield bond price changes.
解释:
B is correct. Investors should exercise caution ininterpreting credit spread curve shape for distressed debt issuers because their bondstend to trade at a price close to the recoveryrate.
A is incorrect because the high-yield spread curve tends to invert during a contraction, while C isincorrect because a high-yield curve inversion is related to the relationshipbetween near-term and long-term default as opposed to DTS.
请问这个B选项是什么意思,它和答案描述的不一样的后半段的意思 我不理解