Section VI: Analysis of Market Technicals

By Robert S. Kricheff

When people talk about market technicals for the corporate debt market, they are basically talking about supply and demand in the market. For example, is there significant new issuance coming to market in the form of new bonds or loans and is there significant new buying or selling interest coming from investors as money is attracted to a specific asset class or is it leaving an asset class? Technicals matter greatly in influencing the pricing of securities and overall market movements. They can impact all of the capital markets or can influence subsets of the market—even specific industries, rating categories, or security types can be impacted in isolation from the rest of the market. ...

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