- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 31. Credit Analysis Models
- Subject 6. The Term Structure of Credit Spreads
CFA Practice Question
Which factor tends to cause a steeper credit spread curve?
A. High yield bonds
B. A strong economic climate
C. The least frequently traded bonds
Explanation: Note the credit spread curve is most heavily influenced by the most frequently traded securities, but there's no evidence the curve itself will be more flatten or steepen.
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