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Fixed Income (Bond Market) Interview Preparation



Question: What are the types of Credit risk?

Answer: There are following types of credit risk
- Default risk
- Credit-spread risk
- Downgrade risk.


Question: What is the use of Credit Risk model?

Answer: Using Credit risk models you can estimate the probability distribution of losses for a bond portfolio.


Question: For measuring the bond portfolio risk, what you use?

Answer: Portfolio risk measures include
- Statistical measures of return
- Tracking error risk.


Question: What all are the statistical measure are used for a bond portfolio and benchmark?

Answer: Statistical measures of portfolio and benchmark risk include the
- Standard deviation
- Skewness
- Kurtosis.

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