The historical average rate (after an adjustment for inflation) is roughly 3.25 to 3.5 percent.
Johnson further notes that if the Dow had grown at its historical average annual rate of 10% since July 1982, it would have only reached 5, 440 by now.
Although we expect IBM to maintain its high margins given the strength of its GBS business, a contraction in GBS profit margin in the future to historical average of rate of 12.5% would result in downside of 5% to the Trefis price estimate.
On the one hand, a combination earnings growth and liquid capital markets will depress default activity across the general leveraged loan population, keeping the rate inside the historical average of 3.4%.
Still the rate remains well short of the historical average of 3.4%.
FORBES: May 2012, US Leveraged Loan Market Trends and Analysis
Average earnings are rising by just 2.1%, a very muted rate by historical standards.
The consensus default rate estimates for 2012 and 2013, in fact, are inside the historical average of 3.4%.
According to Moody's, a rating agency, the third-quarter delinquency rate of 3.89% was almost a full percentage point below the historical average.
Switching gears, the loan market default rate inched down to 1.4% in February and remains well inside the historical average of 3.3%.
With a price-to-earnings ratio of 23.10 and a growth rate (based on the average of the three-, four- and five-year historical EPS growth rates) of 24.14%, Hasbro has a price-to-earnings-growth ratio 0.96.
Also, the long-term EPS growth rate of 36.68%, based on the average of the three- and five-year historical EPS growth rates, exceeds the 15% minimum that the strategy requires.
They must note, though, that the market is still more than 30% off its peak, and the rate of distressed properties, while substantially lower than in 2009, is still far above the historical average.
FORBES: What Housing Recovery? Distressed Sales Still High, Shadow Inventory Massive
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