I know we are debating in the United States and the UK when the central bank will stop buying additional government bonds but if we are honest, no one who should be taken seriously currently expects long-term bond yields to go through the roof.
Fascinating article, Joachim! I started reading about investing and doing it part-time (because I automate most of it via SIPs) a few years ago. A few months later, I came across the interest coverage ratio as a means to evaluate solvency. It has been a good, quick check for me to analyse companies, ever since. However, looking at how low borrowing rates have an impact on companies with differing ICRs is eye-opening.
You've talked multiple times about how low interest rates are here to stay for a while. Does that make the interest coverage ratio an even more valuable tool? And how do higher interest rates affect high ICR companies vs low ICR companies?
Would the concepts still apply? It'd be interesting to know.
Most of the best finance and investing literature I see online deals only with data from the US, Europe, Japan, Canada, and China. It would be great if you could have some India related data and analyses as well in your posts.
I promise you'd have at least one reader for that.
Fascinating article, Joachim! I started reading about investing and doing it part-time (because I automate most of it via SIPs) a few years ago. A few months later, I came across the interest coverage ratio as a means to evaluate solvency. It has been a good, quick check for me to analyse companies, ever since. However, looking at how low borrowing rates have an impact on companies with differing ICRs is eye-opening.
You've talked multiple times about how low interest rates are here to stay for a while. Does that make the interest coverage ratio an even more valuable tool? And how do higher interest rates affect high ICR companies vs low ICR companies?
To add some context, I do most of my investing in India, where interest rates are still much higher than most of the western world.
https://data.oecd.org/chart/6q49
https://data.oecd.org/chart/6q48
Would the concepts still apply? It'd be interesting to know.
Most of the best finance and investing literature I see online deals only with data from the US, Europe, Japan, Canada, and China. It would be great if you could have some India related data and analyses as well in your posts.
I promise you'd have at least one reader for that.