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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Haim R. Branisteanu who wrote (2716)11/29/2003 9:45:11 AM
From: Crimson Ghost  Read Replies (1) of 110194
 
Junk bond spreads over treasuries now smallest since 1999. But spreads still are far above the lows set in 1997 so there still is room for further narrowing. Plus treasury yields are much lower today than they were in 1997.

Bottom line -- still room for more gains until treasury yields really shoot up big time. Many of the junk funds would have to rise another 50% to reach the records set in 1997 in addition to the 20-25% gains posted this year.
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