Plotting the spread cycle

Jochen Felsenheimer, head of credit and credit derivatives strategy at HVB in Munich, looks at the factors driving the spread forecast for 2007

Many believe that the flood of liquidity central banks provided in the aftermath of 9/11 and to fight the market impact of 'Enronian economics' played a crucial role in asset price inflation during the last few years. However, while central banks can affect the amplitude of cyclical swings, they cannot affect the character of the cycle itself.

Leverage and profit growth of companies are crucial parameters for pricing equity and debt through the cycle. In chart 1, we highlight the real investment

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here