标题: spread risk vs credit risk [打印本页] 作者: Muddahudda 时间: 2011-7-11 19:31 标题: spread risk vs credit risk
spread risk vs credit risk: any relationship?作者: nannan66 时间: 2011-7-11 19:31
Spread risk is the risk of deterioration in credit rating and therefore decrease in value of a bond due to spread rising. For example, if rating goes from BBB to BB the spread will go up.
Credit risk is the risk of default on what is owed.作者: zwjy 时间: 2011-7-11 19:31
credit risk include default risk spread risk downgrade risk
lv1 already learn it
if you mean credit risk in risk management , it is counterparty can't pay due payment作者: cityboy 时间: 2011-7-11 19:31
In order to hedge against spreads widening, long credit spread forward or purchase credit spread call.
