问题如下:
Kowalski analyzes the outstanding bonds of DLL Corporation, a high-quality issuer with a strong, competitive position. Her focus is to determine the rationale for a positively sloped credit spread term structure. DLL’s credit spread term structure is most consistent with the firm having:
选项:
A.low leverage.
weak cash flow.
a low profit margin.
解释:
A is correct. Positively sloped credit spread curves may arise when a high-quality issuer with a strong competitive position in a stable industry has low leverage, strong cash flow, and a high profit margin. This type of issuer tends to exhibit very low short-term credit spreads that rise with increasing maturity given greater uncertainty due to the macroeconomic environment, potential adverse changes in the competitive landscape, technological change, or other factors that drive a higher implied probability of default over time. Empirical academic studies also tend to support the view that the credit spread term structure is upward sloping for investment-grade bond portfolios.
老师好, 题中说Her focus is to determine the rationale for a positively sloped credit spread term structure.问题哪里可以看出是在问下面哪一项是符合high quality bond 的特征的? 一开始读题,以为是在问 下面哪一项可以说明credit spread curve will have an upward slope? 以为low leverage--> lower risk --> narrower credit spread--> slope downwards 所以不能支持curve 向上的说法。 虽然用删选的方法可以选对,想问的是怎么读题可以不理解错? 谢谢。