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Which of the following statements is NOT true about the CDS spread? a) Other things equal, CDS spread should be higher is the recovery rate
Which of the following statements is NOT true about the CDS spread?
a) Other things equal, CDS spread should be higher is the recovery rate is higher.
b) Other things equal, CDS spread should be higher if the yield spread of the bonds issued by the reference entity is higher.
c) CDS spreads generally go up when the macroeconomy is bad.
d) CDS spread should be negatively correlated with the stock price of the refence company.
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