“RELATIVE-VALUE METHODOLOGIES FOR GLOBAL CREDIT BOND PORTFOLIO MAN...

28. “Relative-Value Methodologies for Global Credit Bond Portfolio Management” The candidate should be able to: d) discuss the primary reasons for secondary market trading, including yield/spread pickup trades, credit-upside trades, credit-defense trades, new issue swaps, sector-rotation trades, yield curve-adjustment trades, structure trades, and cash flow reinvestment; e) discuss and evaluate corporate bond portfolio strategies that are based on relative value, including total return analysis, primary market analysis, liquidity and trading analysis, secondary trading rationales and trading constraints, spread analysis, structure analysis, credit curve analysis, credit analysis, and asset allocation/sector analysis. 2008 Level III Guideline Answers Morning Session – Page 17 of 40 Question: 5 Topic: Portfolio Management – Fixed Income Investments Minutes: 13 LOS: 2008-III-9-30-a, b, d