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

February 3, 2018


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


From → Asset Valuation

  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.

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