BAB futures contracts can be used to manage the credit risk posed by the borrower.

Name: BAB futures contracts can be used to manage the credit risk posed by the borrower.
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Question

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BAB (Build America Bonds) futures contracts are not designed to manage credit risk; they are primarily used for hedging interest rate risk associated with holding the bonds. Credit risk management would involve other financial instruments or strategies.

BAB Futures Contracts Can Be Used to Manage the Credit