Skip to content

High-yield bonds have ____ exposure to interest rate risk than investment grade bonds.

February 3, 2018

Less

High-yield portfolio managers are more likely to focus on credit risk and less likely to focus on interest rate and yield curve dynamics.

Advertisements

From → Asset Valuation

4 Comments
  1. I think HY bond has more exposure to default risk than to interest rate risk, in comparison to IG bond

    • You “think” or you “know”. I’m positive I made this flash card from the official CFA study materials extremely recently. So although it is possible I wrote it down or typed it out wrong. If you can cite a page number in the current edition of the official CFA curriculum material that contradicts this. I’ll have to change this post and the actual card in my collection.

    • Actually you are correct. I got this question correct but then when I made my this flashcard I copied the false statement from the question without reversing the key word I guess. Good eye.

Trackbacks & Pingbacks

  1. CFA® Level 3 Exam Post-mortem – Muskblog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: