Multiple Choice
Why do spreads on HLT loans behave more like investment-grade bonds than like high-yield bonds?
A) They tend to be more junior in bankruptcy.
B) They tend to have greater collateral backing than do high-yield bonds.
C) Because no bank makes a market in this debt.
D) Because securities firms do not make a market in this debt.
E) They tend to have no covenant protection.
Correct Answer:
Verified
Correct Answer:
Verified
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