Can anyone explain this using a timeline please ?
Discy Latest Questions
The use of an actual default rate in the calculation of CVA overstates the observed value of the bond because it does not include a default risk premium associated with the timing uncertainty of possible default loss.
The liquidity of an issuer can influence the curve as even wider bid/ask spreads for certain issuers can impact the curve’s shape. If an issuer currently plans to refinance front end issues with longer maturities, the issuer’s credit curve will ...