Fixed Income

CFA Level I Fixed Income
#1

Why does the supply condition in a short period of time lead to widening of spread? Shouldn’t the spread be contracting?

thanks

#2

If there is a lot of new supply and demand does not increase, then bond prices should fall. Lower prices mean higher spreads.

BullishBear Finance

#3

thanks

#4

You are welcome!

BullishBear Finance