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Credit Cycles Default and recoverv rates move in cycles. Risk premia move in cycles too Typically, defaults start to occur after there has been an economic slow down. Depending on the root cause of the slow down, different sectors may react differently .For example: 2.000 - Tech, 2008 - Banking Ck>balSpe<UI~liv ...C.T~deO.faull'btf! F~r""',,'l ___ . .' ' ' ' - _'-"""."' ' ' ' - __ :lpI>.-r.,.".:>" 2000 ~cQVery Oulh,,,k !\ 5
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This note was uploaded on 09/06/2011 for the course FIN 428 taught by Professor Hood during the Fall '11 term at Iowa State.

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KIC000016 - .... ,&amp;amp;lt;f . ......

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