Question: ** When analyzing the collateral and analyzing the business risk and ability to pay for corporate bonds, market participants often separate issuers into these four

** When analyzing the collateral and analyzing the business risk and ability to pay for corporate bonds, market participants often separate issuers into these four sectors:

(1) Utilities, (2) Transportation, (3) Industrials and (4) Banks/Financial Institutions.

  1. Why are transportation companies considered separately from industrial companies? In other words, what is different about these types of companies?
  2. Why are utilities considered separately from industrials? In other words, what is different about these types of companies?

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