What is the ratio of location?

The ratio of the location is a ratio that indicates which percentage of trails problems in a given week has been successfully sold. If the ratio is high, it suggests that the market for urban bonds is strong and there is a great interest among subscribers. The low ratio, on the other hand, suggests that the market is slow and there is less interest in new problems. In addition to being an indicator of city bond markets, the position of the location may also provide guides about the future direction of the economy in general. Location ratio includes only offers one million US dollars (USD) or more and counts for the previous week. Archives of the publication provide information on the conditions of placement from previous weeks that can be used by long -term trends.

In order to find the position ratio, economists divide the number of municipal bonds sold in a given period of time. This number, also known as the ratio of acceptance, can provide important health information marketu with urban bonds. In addition to being displayed as a separate ratio, it can also be provided in connection with the entry on bond issues and general economic activities. Publications may also include graphs of monitoring ratio in time to illustrate market movements in favor of investors.

municipalities can consider it useful to monitor the ratio of location so that they can timing a new problem for the period of interest in urban bonds and ensure that they most likely acquire subscribers and quickly move bonds. If the market is slow, new problems may not be well pleasant. Likewise, investors and subscribers are usually interested in trends and the latest data to make healthy investment decisions.

Some things that may affect the acceptance of individual municipal bond offers include things such as a credit rating rating by rating agencies, past bond performance, offer size and general economic health. For example, in a depressive eKonomice can try to issue a large bond offer with bad credit rating.