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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 665.67-0.9%Nov 17 4:00 PM EST

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To: Joan Osland Graffius who wrote (22904)8/12/1999 10:33:00 PM
From: Haim R. Branisteanu  Read Replies (1) of 99985
 
Joan, the corporate debt market is soaking up all the liquidity. Mature companies are now issuing public debt in amounts not heard of before. Each week something around $10 billion or more.

The new IPO's are peanuts compared with the debt issued.

Now think what would you like to own the stock of GE that may return 10% to 15% a year or a hedged pair of treasury and GE debt issued at 100 to 150 bp spread and the pair trade returning 20% a year.

Not to mention convertibles

It is your choice <G>

Haim
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