Historical transition matrix for corporate bond ratings

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Problem:

Please explain what information is contained in an historical transition matrix for corporate bond ratings. How might this information be used by a bond portfolio manager to help assess credit risk, over one year and three year horizons?

Additional Information:

This question basically belongs to Finance as well as it discusses about historical transition matrix for corporate bond ratings and how this information can be used by bond portfolio managers.

Reference no: EM13826509

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