http://www.real-estate-advisor.net Professional Advice on Investments Mon, 08 Mar 2010 22:58:07 +0000 http://backend.userland.com/rss092 en You have the potential to be a great partner and to create successful, long-lasting, trustworthy, and mutually beneficial partnerships. The formula is simple. Again and again I have emphasized the importance of understanding yourself first. It all begins with you. You need to know what you want. You need to ... http://www.real-estate-advisor.net/payday-loan-it-all-begins-with-you/ Exit barriers are also important as they vary widely across industries depending on the amount of sunk costs. These are costs a company will not recover when it exits a business. Power of supplier: Integration potential Industry dynamics might be changed, for example, by vertical integration of suppliers. Threat by new competitors: High ... http://www.real-estate-advisor.net/the-dynamics-of-credits-and-loans/ The various types of competition can be grouped as follows: Pure monopoly: Only one company provides a certain product or service in an area (e.g. post office, local utility companies). It is a result of regulation, patent, license or economies of scale. Earnings are highly predictable since competition is almost nonexistent ... http://www.real-estate-advisor.net/the-various-types-of-credit-competition/ Corporate bond investors should target industries with a balanced business risk and financial risk profile. In mature industries cash flows become increasingly predictable and capital expenditures of companies tend to stabilize. In such an industry the task is to select those companies who succeeded in controlling their cost structures and operate ... http://www.real-estate-advisor.net/a-credit-for-corporate-bond-investors/ For a fixed income investor the best investments will be in sectors whose life cycle is in stages 3 and 4. Stage 1 is characterized by high business and financial risk. The rewards can be substantial but fatal losses can occur as well. The traditional financing sources for early stage ... http://www.real-estate-advisor.net/best-credit-investments-for-a-fixed-income-investor/ The analysis of an industry’s life cycle is useful for making projections about profit margins, earnings growth, trends in sales and profitability. To simplify things it is quite common to reduce the entire life cycle of an industry to 5 stages Such a 5-stage model is described by Reilly ... http://www.real-estate-advisor.net/reduce-the-entire-credit-cycle-to-5-stages/ The sector selection is one of the most important performance drivers in a corporate bond portfolio. The overweighting and underweighting of different industries is a key element in a corporate bond strategy. The weighting of sectors in a corporate bond portfolio is the result of controlled deviations from the benchmark. ... http://www.real-estate-advisor.net/the-analysis-of-credit-and-loans-industry/ Although the consumer sector did surprisingly well, the spreads of cyclical sectors widened massively between the beginning of 2000 and October 2002. Apart from external shocks such as September 11, 2001, there are two economic explanations for this observation. First, the corporate sector increased its leverage dramatically between 1997 and ... http://www.real-estate-advisor.net/the-spreads-of-loans-sectors-widened-massively/ The breakdown of real GDP in its components highlights the importance of private consumption and investment for the state of the economy. In Q4 2003, personal consumption and investment accounted for 87 percent of US real GDP, that is, these components are major drivers of the economic cycle. Although the ... http://www.real-estate-advisor.net/cyclical-versus-noncyclical-payday-sectors/ Finally, while the subjects of industry analysis and the identification of relative value between sectors are covered in more detail below, it should be noted that the sector allocation has a substantial influence on the risk profile of a corporate bond portfolio. Sectors differ not only with respect to the ... http://www.real-estate-advisor.net/the-influence-of-credit-sector-allocation/