In core reading it is mentioned that “steep yield curve indicates higher credit premium”. I’m thinking that steep yield curve indicates that economy’s going to do well in future, therefore defaults will be low, so credit premium demanded by investors ...
SSEI QForum Latest Questions
If the credit losses are expected to be higher next year, then that means investors will demand a higher credit premium right? How come they’re saying that credit premium will increase slightly less than expected?
What is the difference between Active share and Active weight?
I am confused regarding calculation of interest expense under IFRS and US GAAP. According to Sir’s notes, under IFRS it is DR x beg funded status and under US GAAP it is DR x beg PBO But in one sum, where they ...
“On 31 December 2018, NinMount paid £320 million to purchase a 50 percent stake in Boswell Company. The excess of the purchase price over the fair value of Boswell’s net assets was attributable to previously unrecorded licenses. These licenses were ...
“The factor sensitivities are generally determined first in fundamental factor models, whereas the factor sensitivities are estimated last in macroeconomic factor models.” Can anyone explain this statement?
If a company decides to refinance old issue with new issue of longer maturity, will the issuer’s credit curve flatten or steepen?
Question was about the least likely correct issue. Why A is correct? In structural model, the information that is required is known only by the insiders, right? Here they are saying that the fixed income firm has all the information ...
Swap rate of Euro leg is 2.32% and HKD is 1.85% EURIBOR after 90 days 2.94 (90) 3.03 (180) 3.08 (270) HIBOR after 90 days 1.95 (90) 2.45 (180) 2.7 (270) Initial Principle €25,000,000 and HKD 285,500,000 (11.42 HKD/EURO) Exchange rate after 90 days ...
The cross rate implied by the interbank market is 85.76/85.80 In triangular arbitrage, we are not supposed to use implied quote in calculation. Then how come the answer is C?