Turning more confident on embattled economy

Assignment Help Financial Management

Reference no: EM132029720

On February 8, Outlandia issued a new seven-year bond and raised $3.72 billion at a yield of 3.5 percent. The issuance proved to be oversubscribed. Monday's drop in yields was supported by Fitch's rating upgrade to "B" from "B-" on the basis that there is lower political risk, the country is hitting higher-than-expected fiscal targets and a has seen a steady rise in its GDP (gross domestic product) growth. The yield on the five-year Outlandian sovereign bond dipped by 5 basis points Monday following the upgrade, with Fitch citing improved economic conditions in the southern European country. The country's 10-year bond yield had also dropped more than 14 points basis last Friday, showing that investors are turning more confident on the embattled economy.

Analyze the above passage.

Reference no: EM132029720

Questions Cloud

What is income elasticity of demand for health care visits : ECON 550 Homework. Suppose that Sara's income rises to $42,000. What is her income elasticity of demand for health care visits

What is the current intrinsic value of the option : What is the current intrinsic value of the option? What price must July Crude reach for you to break even if you exercise the option?

Are all major points illustrated adequately : Thoroughness: Are all major points illustrated adequately? Are there parts that need more explanation or evidence?

Calculate animal chin cost of preferred : Calculate Animal Chin’s cost of all debt and the after-tax cost of debt. Calculate Animal Chin’s cost of preferred.

Turning more confident on embattled economy : Showing that investors are turning more confident on the embattled economy.

Government deficit have on the price of securities : What effects would an increase in government deficit have on the price of securities?

Analyzing the major employment level in detail : Topic: Analyzing the major employment level as a strategy to enhance student career. Purpose: Finding the major employement level in categories to suggest.

Calculate emc estimated value of operations : The weighted average cost of capital is WACC = 12.5%. Calculate EMC's estimated value of operations.

Ideal gas laws to calculate the mass of a mixture : Use the ideal gas laws to calculate the mass of 25 m3 of a mixture of 21% v/v oxygen (O2) and 79% nitrogen (N2)

User Account

All Pages