Project_Paper_I_Example[1]

Project_Paper_I_Example[1] - Project I Example Fin 353...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Project I Example Fin 353 Economic Analysis (THIS EXAMPLE IS COMPLETELY MADE UP. DO NOT FOLLOW THE ANALYSIS. IT IS ONLY FOR VISUAL PURPOSES TO UNDERSTAND HOW TO PREPARE YOUR ECONOMIC OUTLOOK PAPER.) The US economy appears to be a high growth path based on our analysis of seven indicators. The first indicator is the spread between Baa and Aaa Corporate bonds. Baa corporate bonds are investment grade and Aaa are the highest quality. The larger the spread the greater indication the US economy is in a recession or headed toward one. Figure 1: Spread Based on Figure 1 the spread is increasing, however, it is still below historically averages of 10%. Therefore, the spread is indicating the US is in a bullish state. The yield curve suggests the direction of interests. Figure 2 lays out the yield curve for October 27 th . Figure 2: Yield Curve Figure 2 suggests the yield curve is flat meaning market participants are expecting interest rates to stay flat or decline modestly. This means that the economy is ________________.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Project_Paper_I_Example[1] - Project I Example Fin 353...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online