JoeyDVivre Wrote: ------------------------------------------------------- > Good job accountant23! I second that!! How would you perform a valuation/selection analysis from the perspective of repayment versus changes in bond spreads? For example, if something is yielding 15%, bond spreads widen that would cause the bond to drop in value 10%, and treasuries yield 3%—is your alpha 2%? Would you recommend a “buy” rating based on this? What other factors do you consider from a buy/sell valuation perspective? Also, what kind of alpha should/would someone (i.e., investor) expect by employing a high-yield strategy?
ryguy904 Wrote: ------------------------------------------------------- > JoeyDVivre Wrote: > -------------------------------------------------- > ----- > > Good job accountant23! > > I second that!! > > > How would you perform a valuation/selection > analysis from the perspective of repayment versus > changes in bond spreads? For example, if > something is yielding 15%, bond spreads widen that > would cause the bond to drop in value 10%, and > treasuries yield 3%—is your alpha 2%? Would you > recommend a “buy” rating based on this? What > other factors do you consider from a buy/sell > valuation perspective? > > Also, what kind of alpha should/would someone > (i.e., investor) expect by employing a high-yield > strategy? Bump please - Anyone??
ryguy904 Wrote: ------------------------------------------------------- > > How would you perform a valuation/selection > > analysis from the perspective of repayment > versus > > changes in bond spreads? For example, if > > something is yielding 15%, bond spreads widen > that > > would cause the bond to drop in value 10%, and > > treasuries yield 3%—is your alpha 2%? Would > you > > recommend a “buy” rating based on this? What > > other factors do you consider from a buy/sell > > valuation perspective? > > > > Also, what kind of alpha should/would someone > > (i.e., investor) expect by employing a > high-yield > > strategy? > > > Bump please - Anyone?? Double bump for one last chance. Any help would be appreciated. Cheers, RG