Why do companies borrow in the corporate bond market?

First, a discrepancy in tax treatment means that debt repayments lower a company’s tax bill. With corporation tax on company profits averaging 29% in advanced with debt saves a company money. Second, companies can borrow money for longer terms from the bond market than from banks, which are not typically keen on wich arrangement.   Source: […]

Read more

The relation between stock and currency returns

[My knowledge] (1) I think the international equity returns tell little about the behavior of currency returns. The thing is that international equity returns are driven by various factors, for example, GDP, inflation rate, political issue, fiscal policy, monetary policy, pure market risk and firm-wide performance. Also, currency returns are related to GDP, export/import data, […]

Read more