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Describe the behavior of credit spreads over the business cycle. Why do credit spreads tend to...

Describe the behavior of credit spreads over the business cycle. Why do credit spreads tend to widen during a falling rate environment? If you think the economy will strengthen unexpectedly how would you alter the 1) duration of your portfolio (explain why) and 2) credit quality of your portfolio.

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jeff jeffy answered 2 years ago
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