MGMT 1P93 Lecture Notes - Lecture 1: Corporate Bond, Municipal Bond, High-Yield Debt

• School: Brock University
• Department: Business - Management
• Course: MGMT 1P93
• Professor: Herb F Mac Kenzie

Document Summary

The bond market considers united states financial sector is one of the safest heavens from turmoil even as the bank stocks face their worst losses in 8 years but have softened after an impressive rally since the election of. Many investors have been told for many years now that are stocks are the only game in town, and if uncertain of the (cid:373)a(cid:396)ket tha(cid:374) the(cid:396)e"s (cid:449)isdo(cid:373) i(cid:374) i(cid:374)(cid:272)(cid:396)easi(cid:374)g (cid:455)ou(cid:396) allo(cid:272)atio(cid:374) to (cid:271)o(cid:374)ds. I(cid:374)(cid:448)esto(cid:396)"s (cid:396)easo(cid:374) to (cid:272)o(cid:374)side(cid:396) (cid:271)u(cid:455)i(cid:374)g (cid:271)o(cid:374)ds is (cid:271)e(cid:272)ause it"s the right long term decision for their portfolio based on asset allocation. Pundits can be wrong about short term predictions of bonds and riskiness. If we continue to see the big picture move from the federal reserve system (cid:894)fed(cid:895) (cid:449)hi(cid:272)h is fa(cid:396) f(cid:396)o(cid:373) (cid:272)e(cid:396)tai(cid:374)t(cid:455). The (cid:271)o(cid:374)d (cid:373)a(cid:396)ket itself has(cid:374)"t (cid:396)eall(cid:455) see(cid:374) rates move high at all. In the market the rate on the 10 year treasury is still low and roughly at 2. 7%.