Banks are allocating more capital for their trading operating off which we estimate a yield to come up with an estimateof profits from the trading divisions.
It's still recovering from recession pain but sells at 12 times my estimateof fiscal 2011 earnings and 75% of sales, and it sports a 4% dividend yield.
We estimate that the high yield risk premium would then drop to 439 basis points, reflecting prevailing levels of defaults, economic indicators, and credit availability.