6 Nature & impact of main types of risk on investment performance Flashcards
1
Q
What is a bail-in?
A
A struggling institution is saved by its existing shareholders, bondholders & depositors
2
Q
What is credit spread?
A
The difference between yields of government bonds vs different grades of corporate bonds
3
Q
What is credit spread risk?
A
Drop in creditworthiness of issuer = drop in investment value
