Monday, February 6, 2012

Goldman Sachs Stock Price & Credit Spreads

Look at the following numbers, taken from January 31 (first session) and February 7, 2012:

- Junk bond: 6.87% (January 31); 6.70% (February 7) [see]:

- Treasury Note: 1.83% (January 31); 1.86% (February 7) [see].

[QUESTION 1: HAS THERE BEEN A PROCESS OF FLIGHT-TO-SAFETY IN THE COURSE OF LAST WEEK? HOW CAN YOU TELL?]

[QUESTION 2: ALL OTHER THINGS BEING EQUAL, WOULD IT MAKE SENSE FOR THE STOCK PRICE OF GOLDMAN SACHS TO FALL OR TO RISE?]
_______________

No comments:

Post a Comment