An active portfolio manager believes that current credit spreads are reasonably priced. Economic forecasts suggest that credit curves will remain stable or unchanged over the next two years while credit defaults and annual loss rates are expected to remain low. The manager's portfolio is constrained against lowering the weighted average portfolio credit rating. This portfolio manager will most likely: O lower the credit rating of the portfolio. sell short-credit-duration securities and buy long-credit-duration securities of the same rating. O sell short- and long-credit-duration securities and buy intermediate-credit-duration securities of the same rating. Question 16 0.5 pts A portfolio manager (PM) received an economic report warning of an economic slowdown in the near term. An analyst reporting to the PM provided the following information on excess spread given the economic forecast: Rating Category Baa E (Excess Spread) -1.725 -3.250 -8.750 - 15.025 Ba Based on this information, the portfolio manager's most likely tactical strategy under this scenario is to: short Ba and B issues and buy more A and Baa issues. sell a CDS on an investment-grade high-yield bond index and buy a CDS on a high-yield bond index. Oshort A and Baa issues because they are overvalued and buy more Ba and B issues because they are undervalued