During the 2007-2009 financial crisis credit spreads


1. During the 2007-2009 Financial Crisis, credit spreads between rates on Baa corporate bonds and US Treasury bonds

A. rose by more than 4 percentage points

B. decreased by more than 6 percentage points

C. decreased by more than 8 percentage points

D. none of the above

2. The requirement that a borrower have more collateral than the amount of the loan is called a

A. repossession

B. revaluation

C. loan adjustment

D. haircut

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Financial Management: During the 2007-2009 financial crisis credit spreads
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