Reading 29, Q15 is about Primary Market Analysis.
On p69 of Vol 4, the CFAI text says:
"In the investment-grade credit market, heavy supply often compresses spreads and boosts relative returns for credit assets as new primary valuations validate and enhance secondary valuations...relative credit returns often perform best during periods of heavy supply".
Then the answer key for Q15 on p100 states:
"...The manager expects that in the first quarter of 2000, there will be a surge of single-A rated issues that will come to market, resulting in a WIDENING of spreads and thereby providing an opportunity to purchase single-A rated issues relatively cheaply versus BBB issues."
The answer key to this question seems to be at odds with what is described in the text. Can anyone clear this up for me? |
发表于 2011-7-13 16:24
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