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Better pricing power of a credit

admin | November 21, 2009

Capacity utilization (CAPU) emerges as an important factor for high-yield investments because it is a good indicator for the direction of high-yield spreads. The strongest correlation (0.76) is found by lagging CAPU rates by about six months. Low CAPU rates are not sustainable in the long term. Companies have to adjust their business models in [...]

The distress ratio of your loan

admin | November 11, 2009

The distress ratio is an indicator for the current state of the high-yield market. It can be defined as the percentage amount of all outstanding highyield bonds trading at a spread of at least 1,000 bp over a comparable government bond. The lower the distress ratio the better the shape of the high-yield market.
There is [...]