The bonds of Ericsson, Tyco and ABB. All three companies had credit-specific issues in the past and seemed to have overcome those at the time of writing (December, 2003). Their lowest prices were quoted almost at the same time (October, 2002) where risk tolerance reached the lowest level in a decade (measured by VIX). The important point to illustrate is that nonsystematic risks induced the first price falls in all three companies at different points in time. Idiosyncratic risks were responsible for the first massive downward price movement. In this situation, an assessment of the credit should not be based only on credit fundamentals but every credit portfolio manager has to evaluate what volatility his portfolio can sustain because the main task for a high-yield portfolio manager is to manage risk. Technical factors have to be considered because it is likely that market liquidity for a troubled bond will disappear quickly which will result in a “free fall” in price.
Archive for the ‘currency trading’ Category
Flourishing financial websites, but with invalid CSS/HTML November 11th, 2009
Along with the explosive increase of the Web and flourishing financial websites that deal with a variety of topics such as payday loans, stock exchange, forex and real estate, companies have realized the profits that wait for those eager to build a strong online presence. When they decide to publish a financial website on the Internet, companies are able to build their brand, market their products, support any existing customers, release publicity pieces, and even take orders. However, very often lost in the fast pace of growth has been an eye on the influence that their current web-building business will exert on the bottom line and the perspectives of their online presence. Remember that not only does your website financial content have a significant influence on your company’s income but so does the way your website itself is created.
Preparing your site with necessary commitment to web standards – and continuously testing to ensure it keeps constant compliance to those standards – can save your business much money and possibly increase income generated by your website.
