One napkin relates higher yield to low credit quality or longer maturity. I wasnt sure myself what was meant by credit quality. Is there a way to measure this for regular stocks? Some formula perhaps relating to stock volatility, size of company, sector performance etc?
Fine concepts to address on napkins. Not sure how to assess credit quality – any useful tips on this in a comment below welcome!
Can you be more specific about what you mean in terms of “credit quality?”
One napkin relates higher yield to low credit quality or longer maturity. I wasnt sure myself what was meant by credit quality. Is there a way to measure this for regular stocks? Some formula perhaps relating to stock volatility, size of company, sector performance etc?