Risk premiums on corporate bonds are usually countercyclical ; that is, they decrease during business cycle expansions

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Risk premiums on corporate bonds are usually countercyclical

; that is, they decrease during business cycle expansions and increase during recessions. Why is this so?

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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Question Posted: Nov 14, 2024 03:00 AM

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Risk premiums on corporate bonds are usually countercyclical ; that is, they decrease during business cycle expansions and increase during recessions. Why is this so?
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Risk premiums on corporate bonds are usually countercyclical ; that is, they decrease during business cycle expansions

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The Economics Of Money Banking And Financial Markets

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