The assertion that recovery rates are lower in asset-intensive industries is not consistent with the properties of recovery rates. In fact, the opposite is true. Recovery rates tend to be higher in asset-intensive industries. This is because these industries have a substantial amount of tangible assets that can be sold off in the event of a default, thereby increasing the recovery rate. The recovery rate is a measure of the amount that can be recovered from a defaulted bond, and in asset-intensive industries, the presence of tangible assets increases the likelihood of recovering a significant portion of the investment. Therefore, the statement that recovery rates are lower in asset-intensive industries is incorrect and inconsistent with the properties of recovery rates.

Choice A is incorrect. It is generally observed that recovery rates are lower in an economic downturn. This is because during a downturn, the value of assets (which are used to recover the defaulted amount) usually decreases, leading to lower recovery rates.

Choice B is incorrect. Recovery rates are indeed not based on the size of the bond issue. They depend on factors such as the quality of assets, industry type and economic conditions but not directly on the size of bond issue.

Choice C is incorrect. Recovery rates and default rates do have an inverse relationship most times. When default rates increase due to worsening credit conditions, recovery rates tend to decrease as it becomes more difficult for lenders to recover their funds from defaulting borrowers.