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 [...]
