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Wall street article
Article 1
The article highlights the strategy of Technologies Corporation of forming a merger with Raytheon Co. for raising the value to $100 billion. The owners of the merger stated that this strategy will allow the company to increase research incentives and squeezing costs of $1 billion. I think that the merger will increase market shares and stock price by attracting new investors. The companies have taken a wise step to offer a better value proposition to the creditors and investors. The strategy will benefit the companies in the long-run and also support them in managing liabilities and losses. This has also improved the capacity of the firms to invest in new technology such as the enhancement of air traffic control systems. The merger is an important step for offering better travel facilities such as by investing in technology that is linked to increased customer convenience CITATION Car191 \l 1033 (Lombardo & Cameron, 2019).
Article 2
The article discusses the strategies adopted by corporate borrowers for attracting investors. Meeting litigation and debt remains one of the central concerns of business companies. I think that the yield of bonds influences the financial stability of the firms. The average yield on bonds is used for controlling debt as the increase in yield declines debt. However, I believe that the extensive issuing of bonds has resulted in a reduction in the value of treasury note that fell to 2% in 2016. The speculations of the bond are also affecting the business and decisions of the investors. These bonds are also considered as financial assets of the companies so firms investing in them must be able to make the right speculations CITATION Sam19 \l 1033 (Goldfarb, 2019). Risky corporate bonds are more likely to undermine investors trust. The article highlights the case of Avis-budget car rental bonds that were issued at the value of par 5.75%.
References
BIBLIOGRAPHY Goldfarb, S. (2019). Fed Gives Lift to Corporate Bonds. Retrieved 06 29, 2019, from https://www.wsj.com/articles/fed-gives-lift-to-corporate-bonds-11561048881
Lombardo, C., & Cameron, D. (2019). United Technologies Strikes Deal to Merge With Raytheon. Retrieved 06 29, 2019, from https://www.wsj.com/articles/united-technologies-strikes-deal-to-acquire-raytheon-11560112912
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