Description

An overview of the corporate bond markets and introduces credit spreads and credit sensitivity.

Learning Objectives

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1. Identify the link between credit risk and credit spreads.
2. Assess credit risk and bond defaults.
3. Recall historical credit spreads and default rates.
4. Recall the process of corporate bond issuance.
5. Determine how corporate bonds are quoted in the secondary market.
6. Recall the term structure of credit spreads.
7. Recall the concept of credit duration compared to rates duration for fixed coupon bonds and floating rate notes.