STEVEN I. DYM, PH.D.
PresidentMariner Capital Partners
Perhaps more than any other sector in the capital markets, corporate bonds are profoundly affected by the dynamics of the macro-economy. Movements in interest rates, inflation, yield-curve shape and corporate earnings are all driven in large part by the business cycle. These variables, and their volatilities, all play a role in the determination of corporate bond yields and prices, and their derivatives. This chapter explains these various roles and their interactions. It begins with a short synopsis of practical macro-economics.1
Real Gross Domestic Product, or GDP, represents the total value of goods and ...