Personal Finances and Loans Solutions » making money http://www.personal-finances-advisor.com Make your financial advice personalized Fri, 14 May 2010 13:47:04 +0000 en hourly 1 http://wordpress.org/?v=3.0 Credit status will persist as hard evidence /credit-status-will-persist-as-hard-evidence/ /credit-status-will-persist-as-hard-evidence/#comments Sat, 21 Nov 2009 19:54:05 +0000 admin http://www.personal-finances-advisor.com/?p=64 123Aggregate financial ratios give a reliable picture of the state of the highyield market and should not be neglected irrespective of technical factors. Technical factors driving the high-yield market can change fairly quickly but credit status will persist as hard evidence and change only slowly over time. The most important fundamental measures are:

  • Free cash flow generation
  • Refinancing calendar
  • Access to capital markets (bank lending standards)
  • Reported earnings and earnings outlook
  • Equity performance
  • Growth prospects
  • CAPEX needs
  • Leverage trend
  • Coverage trend.

Leverage and coverage ratios are particularly important for the analysis of high-yield issuers. We find significant correlations between the spread levels of selected high-yield issuers and their coverage ratios and their leverage ratios.

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