Revenue Rise with Loans

At this point a vice president at the mortgage servicer urged me to work on improving their process. The first thing I did was bring the servicer and custodian together to talk about the tracking issue. After several meetings, we agreed to try working together to integrate their two processes. Using the Partnership Continuum model, [...]

Clearly investors willing to allocate a part of their budget to corporate bonds are facing two questions. First, they have to decide how much of their budget they want to invest in corporate bonds. In this context we will focus on a pure fixed income portfolio. Usually private as well as institutional investors define their [...]

While the choice of the most appropriate measure of corporate leverage is an arbitrary task, empirical studies indicate that the financing gap is able  to explain a lot of the variance in credit spreads. It is defined as the difference between capital expenditures, including outlays for inventories, and the amount of cash that corporations need [...]

Having discussed some of the most influential economy-wide factors for the performance of corporate bonds, we will now examine specific indicators for the state of the US corporate sector. Traditional metrics of leverage focus on the debt-to-equity ratio. The rationale behind this is that a company’s assets are funded by a combination of debt and [...]

For decades economists have analyzed the behavior of various economic indicators during the business cycle. Employment is commonly seen as one of the lagging indicators for the state of the economy. However, there is a leading indicator for the labor sector that coincides with changes in credit spreads. For example, for most of the time [...]