- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. Credit Analysis Models
- Subject 6. The Term Structure of Credit Spreads
CFA Practice Question
There is a ______ relationship between credit spreads and benchmark rates.
B. counter-cyclical
C. linear
A. cyclical
B. counter-cyclical
C. linear
Correct Answer: B
When the economy is strong we tend to have high benchmark rates and low credit spreads.
User Contributed Comments 0
You need to log in first to add your comment.