题目
Which of the following is most likely to cause an increase (i.e., widening) in a corporate bond credit spread?
选项
A.Economic expansion in the business cycle
B.Increase in the bond’s liquidity
C.Flight to quality
D.Addition of embedded put option feature to the bond
答案
C
解析
Flight to quality is selling of corporates and buying of Treasury securities. In regard to (A), economic expansion—> narrower credit spread In regard to (B), increase in bond liquidity—> narrower credit spread (i.e., illiquidity discount implies lower price implies higher yield) In regard to (D), a put option is favorable to the investor—> narrower credit spread (in contrast, a call option is favorable to the issuer—> wider credit spread)飞向安全资产（flight to quality），它指的是，当出现大规模金融危机的时候，投资者普遍放弃高风险的风险投资资产（出售公司债），而去投资一些低风险的风险投资资产，这个时候很多人会去投资国债（购买国债）。A：经济扩张会缩小信用利差。B：增加债券流动性会缩小信用利差(例如，非流动性贴现率意味着较低的价格意味着较高的收益率）。D：看跌期权对投资者有利会缩小信用利差(相反，看涨期权对发行人有利会导致较宽的信用利差)。