Which of the following statements regarding CDO-squared is correct?I) CDO-squared use other CDOs and CMOs as collateral.II) Risk assessment of CDO-squared is almost impossible due to their complexity.III) CDO-squared have lower credit risk than CMOs but higher than CDOs.
Answer(s): B
James Johnson manages a bond portfolio with all investment grade bonds. Adding which of the following bonds would minimize the credit risk of his portfolio?
Answer(s): A
Banks duration match their assets and liabilities to manage their interest risk in their banking book. Currently, the bank's assets and liabilities both have a duration of 10. To hedge against the risk of decreasing interest rates, the bank shouldI) Increase the duration of the liabilitiesII) Increase the duration of the assetsIII) Decrease the duration of the liabilitiesIV) Decrease the duration of the assets
Answer(s): D
10 basis points are equal to:
Answer(s): C
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Vey commented on May 27, 2023 Highly appreciate for your sharing. CAMBODIA upvote
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