Economics Homework Help

I’m stuck on a Finance question and need an explanation.

As the financial advisor at a money management firm, you have been asked to respond to a request from the client holding the bond portfolio listed below. The client has asked to include asset-backed securities in the portfolio. Select two asset-backed securities for consideration by the client and present them in your discussion post.

In your post, describe the following:

• Your proposed two chosen asset-backed securities for consideration. Include a chart like the one below, with the main characteristics of the two chosen securities.
• Your methodology for choosing the two securities.
• State the bond that you will remove from the client’s portfolio in exchange for the asset-backed security. Explain your reasons for choosing this bond to remove.
• Your expectations of how these asset-backed securities will perform in a rising interest rate environment and why.
  • Specifically relate this to the maturity effect, coupon effect, and/or duration of the chosen security

Issuer	Convertible or non-convertible	Coupon	Maturity	Credit rating	Last price – sale	Last price – yield	Callable?	Puttable?
Schwab Charles Corp	Convertible	3.25%	10/01/24	A	$110.36	-1.793%	Yes	No
T-Mobile USA Inc –	Non-convertible	6.500%	01/15/26	NR	$103.18	5.074%	Yes	No
Kraft Heinz Foods Co	Non-convertible	3.00%	06/01/26	BB+	$106.52	1.543%	Yes	No
Carnival Corp	Non-convertible	7.200%	10/01/23	B-	$107.53	3.658%	No	No
Chobani LLC	Non-convertible	7.500%	04/15/25	CCC	$104.21	4.310%	Yes	No
CVS Health Corp	Non-convertible	6.125%	09/15/39	BBB	$137.77	3.339%	Yes	No
Nissan Motor Co., LTD	Non-convertible	3.043%	09/15/23	BBB	$104.38	1.027%	Yes	No
SHERWIN-WILLIAMS CO	Non-convertible	5.500%	10/15/27	BBB	$100.03	5.497%	No	No