Monday, June 14, 2010
Can a company be more credit-worthy than its government?
In this June 10 2010 video, the Financial Times investment editor, James Mackintosh explains that in 2008, McDonald's became more credit-worthy, according to its bonds and credit default swaps, than the US government. Back then, it was seen as an oddity but now investors are starting to sit up and pay attention. Mackintosh explainss why the spreads don't really make sense. (3m 3sec)