Archive for the ‘cash reserves’ Category
The average credit quality of the issuers
Wednesday, October 28, 2009 19:59 Comments OffFrom the industry structure it becomes obvious that the average credit quality of the issuers in the US investment grade market is lower than in the Euro corporate bond market. The current rating of the Euro market is A, whereas it is only A_ in the US market. Over the last 5 years this differential [...]
Changes in the payday interest-rate environment
Tuesday, October 27, 2009 18:42 Comments OffA comparison of the sector structure of the Euro and US dollar corporate bond markets shows that the share of financials is much higher in the Euro market. While financial companies are somewhat cyclical, especially with respect to changes in the interest-rate environment, they are usually considered a rather defensive sector. The same holds true [...]