** When analyzing the collateral and analyzing the business risk and ability to pay for corporate...

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Finance

** When analyzing the collateral and analyzing the business riskand ability to pay for corporate bonds, market participants oftenseparate issuers into these four sectors:
(1) Utilities, (2) Transportation, (3)Industrials and (4) Banks/Financial Institutions.
Why are transportation companies considered separately fromindustrial companies? In other words, what is different about thesetypes of companies?
Why are utilities considered separately from industrials? Inother words, what is different about these types of companies?

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a Transportation companies are those engaged in transportation services such as airlines railroads roadways shipping etc whereas the industrial sector comprises companies manufacturing goods Companies engaged in the transportation sector See Answer

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** When analyzing the collateral and analyzing the business riskand ability to pay for corporate bonds, market participants oftenseparate issuers into these four sectors:(1) Utilities, (2) Transportation, (3)Industrials and (4) Banks/Financial Institutions.Why are transportation companies considered separately fromindustrial companies? In other words, what is different about thesetypes of companies?Why are utilities considered separately from industrials? Inother words, what is different about these types of companies?