Credit spread is mostly likely to narrow during …a) economic expansionb) economic recessionc) period of flight-to-quality

The correct answer is:

a) Economic expansion

Here's why:

1. Credit spread refers to the difference in yield between a U.S. Treasury bond and another debt security of the same maturity but different credit quality. It is essentially the risk premium for investing in a bond that has credit risk com Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.