NO.PZ2024042601000136
问题如下：
A hedge fund holds a position in subordinated debt of a company that is currently experiencing financial distress. The hedge fund’s manager compares the nature of this exposure to items on the company’s balance sheet. What balance sheet item does the subordinated debt currently resemble, and what market or company condition would improve the expected return on the subordinated debt?
选项：
A.The subordinated debt acts like equity of the company, and a decrease in the volatility of the company’s assets would increase the expected return on equity. B.The subordinated debt acts like equity of the company, and an increase in the volatility of the company’s assets would increase the expected return on equity. C.The subordinated debt acts like callable debt of the company, and a decrease in the volatility of the company’s assets would increase the expected return on callable debt. D.The subordinated debt acts like callable debt of the company, and an increase in the volatility of the company’s assets would increase the expected return on callable debt.解释：
B is correct. When the value of a company is low (i.e., facing poor financial condition), subordinated debt is unlikely to be repaid in full and acts more like equity claim than debt claim. In this case, an increase in company volatility increases the chances that the subordinated debt will be paid off (hence, higher return).
Thus, A, C and D are incorrect.
Sub debt像股票我可以理解，但是波动率上升股价只会下跌啊，怎么会是波动率上升，股价上升呢？
