Impact of perceived market credit risk on price
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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?
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The impact of perceived market credit risk on price. The impacts and credit spread, yield and price is examined.
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When the market suddenly perceived a more important credit risk associated the considered issuer, it means that the credit spread ...
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