contribution to spread durantoin:credit sector is 1.1,treasury sector is 0
Forecast1:spreads to narrow in all other spread sectors
Forecast2:a positively sloped yield curve with short rates rising 25 basis points and long rates rising by about 75 basis points.
ans:lengthen duration in credit sector and shorten it in the treasury sector
in my opinion :in a rising interest environment, investor should shorten duration in credit sector
what ‘s wrong with my answer?
