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We know that, taken every discount curve, it's possible to calculate its forward rates according to our tenor preferences.

We know also that it's actually possible to extract an implied term structure from every discount curve simply using the appropriate forward rates.

This is indeed true for risk free discount curves, because the arbitrage-free assumption which returns the forward rates is fair.

Now let a risky discount curve, that is, every discount curve obtained from liquid issues' yields possibly interpolated and bootstrapped... and so on.

Questions:

  1. does it make sense to extract an implied term structure from it like we're used to do with a risk free zero rate curve?
  2. Is the implied term structure obtained in such a way an arbitrage-free forecast of the future yield curve shape?
  3. If not so, is the assumption that allows to calculate the forward rates valid for risk-free curves only?
  4. Does it make sense to obtain an implied term structure from, say, a CDS spread curve? Why?
  5. If the answer to 5. was affirmative, would that implied term structure be an arbitrage-free forecast of the issuer's default risk?
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Just my 2 cents, if you would work a little to slightly improve your answer accept rate then more people (well at least I) would feel inclined to make more effort to answer this and your future questions...at least, that is how, I think, the dynamics work on this site, the community lives from answers, feedback given on answers (through comments or accepting answers). –  Matt Wolf Sep 22 '13 at 8:45
    
@MattWolf, wow... I would have never thought my accept rate was considered too low, considering I've always been fast to accept and upvote the answers to my questions (at least on Quantitative Finance, although on Stack Overflow I must confess a bit more of slowness). By the way: any idea about the topic? –  Lisa Ann Sep 22 '13 at 10:27
    
not trying to be too investigative, but you find 50% of questions you asked and received multiple answers for not worthy commenting on or marking as sought after answer? Maybe a comment that you do not find any of the answers properly answered would help? –  Matt Wolf Sep 22 '13 at 15:46
    
Was this one the offending behavior of mine? –  Lisa Ann Sep 22 '13 at 16:50
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Ok, in order to give a meaningful answer to your last question I took another look at all your questions where no answers were given. As part of most of such questions users added at least comments and you hardly responded/replied or added additional information in order to address the issues given by users in comments to your questions. If you seriously seek answers to your questions then maybe you want to interact with others that try to help but possibly did not understand your question or did not find it clear enough. Does that make more sense? –  Matt Wolf Sep 23 '13 at 5:26
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