1.A bond fund wishes to speculate on the value of a five-year B-rated junk bond. It believes that, conditional on the bond surviving the next two years, it will rise in quality and be worth more. Suggest a risk management strategy for this trade.

2.With the same ve-year B-rated junk bond in the rst question, what should the fund manager do if instead he/she wanted to bear credit risk for the rst two years but not for the remaining three?

My professor said the first answer should be a TRS but the given answer in text book is a CDS. I do not quite understand the explanation given by my professor could you explain in detail why it is the case? And for the second one the answer should be a CDS given by my professor which i do not understand as well. Please help i am so confused.