Lower rated bonds or bonds with higher spreads behave more like equities in falling equity markets (crisis scenario). For high-yielding bonds (highyield debt), the strike price (the value of indebtedness) is normally closer to at-the-money than in the case of investment grade bonds. The high-yield market spread is correlated with the S&P 500 as a [...]
Risks are triggered by, for example, new management structures or reporting lines, new strategies and commercial agreements (including mergers, agency or distribution agreements). The complexity of this risk is illustrated by UK retailer Marks & Spencer’s expansion into overseas markets. Unhappily for its managers and shareholders, the strategy failed to deliver the anticipated results. When [...]
My name is Emily Mortimer. I'm an academy professor with a degree in economy and considerable experience in training both students and private contractors in matters of business, finances and money management.