Since debt is cheaper than equity, in theory, this would mean that a company would prefer to be fully funded by debt to minimize its cost of capital. However, it’s not the case in reality that a company has a capital structure that is 100% debt.

Chart of the Day: Net-debt to equity is well-above the 2008 level, while times-interest-earned is slightly lower. Worth pointing out is that the effective interest rate is significantly lower now. Problematic if earnings stagnate and rates increase.

Chart of the Day: US household debt is back just above the levels seen at the start of the new millennium; big deleveraging since the Global Financial Crisis. Corporates, though, are back to 2008 levels which could constitute a risk if rates were to increase.

Chart of the Day: Since 2001, US household debt as a % of GDP has remained at about the same level. Corporate debt has increased a bit. While gov’t debt as a % of GDP has doubled since 2001.

Chart of the Day: In 1H19, all Asian markets were up except for Malaysia. In local currency terms, Hong Kong was the strongest performer. For foreign investors, Thailand was the best as the Baht strengthened significantly.

MONEY FM 89.3: Andrew Stotz is guest on Across the ASEAN to discuss The Thai SET’s Recent Strength and What’s Keeping Thai Markets Afloat?

It is hard for the Bank of Thailand to weaken the Baht as the government 10-year bond yield is already pretty low at 2.2%. The Baht also has some safe-haven status as Thailand has relatively large international currency reserves.

Taiwan Mobile Company Limited (3045 TT): Profitable Growth rank of 2 was same compared to the prior period’s rank of 2. This was World Class compared to 130 large Telecom companies worldwide.

Quality Construction Products Public Company Limited (Q-CON TB): Profitable Growth rank of 1 was up compared to the prior period’s rank of 3. This was World Class compared to 460 small Materials companies worldwide.

China Steel Chemical Corporation (1723 TT): Profitable Growth rank of 1 was up compared to the prior period’s rank of 2. This was World Class compared to 820 medium Materials companies worldwide.