Consider an outstanding corporate bond in the secondary market (issued a few months ago). All else being equal, the market suddenly perceives a more important credit risk associated with the considered issuer. What impact should it have on: the credit spread, the yield and the price?© BrainMass Inc. brainmass.com October 2, 2020, 2:11 am ad1c9bdddf
When the market suddenly perceived a more important credit risk associated the considered issuer, it means that the credit spread ...
The impact of perceived market credit risk on price. The impacts and credit spread, yield and price is examined.