Explanation

During a recession:

• Consumer cyclical sectors (like consumer cyclical goods) are more sensitive to economic downturns
• Lower credit ratings (BBB vs AAA) indicate higher default risk
• Bond Y is in the consumer cyclical sector with a BBB rating, making it most vulnerable
• Bond X has the same sector but higher credit rating (AAA)
• Bond Z is in consumer non-cyclical sector (more defensive) despite having BBB rating

Therefore, Bond Y is most likely to have the worst performance during a recession due to its combination of cyclical sector exposure and lower credit quality.