Secular changes - what we need to know

I am a bit confused what we need to know about it for exam purpose. Or how the exam questions will appear for this topic. --It is related to characteristics of bond issues --Intermediate Term bullets dominate the corp. bond mkt in all but the high yield --high yield segment is dominated by callable issues, but it is expected to change due to improving credit quality and lower interest financing and refinancing?? Can someone share her/his understanding of this topic? Tks!

one way to test this material is by way of ‘agree-disagree’ statements. there were quite a few related to this topic in sample and mock exams.

level3aspirant, Thanks for the response. So it seems CFAI would possibly test it with couple of MC Qs. Were these sample/mock Qs pretty easy/hard/vague??

if you knew what section they were trying to test, i.e. secular changes they were pretty straightforward. like one statement said “there’s a tendency for bond markets to move towards higher duration securities for so and so reason…” you had to disagree since trend is towards shorter duration bonds and lower intrest rate sensitivity in general.