Aidan Neill

Analysis: Last week saw high-yield bond yields drop below an average of 7% for the first time in six years, according to BofA Merrill Lynch data. On the face of it this is good news: low recent default rates should persuade lenders to dish out more loans to small businesses, while low costs of capital for businesses will encourage hiring and expansion. The wider problem is that most of the high-yield market’s performance stems from investors needing to find somewhere…

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Analysis: Facebook has recently raised around $2bn in new funding from Goldman Sachs and other investors in a deal that values the social networking business at around $50bn. While the company recently reported being “free cashflow positive” (it makes money) for the first time, the valuation reflects a multiple of earnings that is likely to be well into the hundreds, if not thousands. In a similar vein, the 19th Century saw huge investment in the railroad infrastructure in the US….

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