SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chispas who wrote (81038)7/5/2008 7:52:56 AM
From: John Carragher  Read Replies (1) of 116555
 
CreditSights: Guardedly Optimistic About U.S. Loan Market
by: Research Recap posted on: July 04, 2008 | about stocks: DIA / IYF / SPY / XLF Font Size: PrintEmail

CreditSights remains guardedly optimistic about the US loan market for the second half of the year and still believes that the market most likely bottomed out in February.

In its second half 2008 outlook, CreditSights says the crux of maintaining a constructive view on the direction of loan prices in the face of new developments and the recent price move down is:

that the technical pressure is moving is a favorable direction;
that there will come a point in the second half of the year when loan prices will be based more on fundamental views than technical pressures; and
that the change in the technicals will be more pronounced than the change in the fundamentals.
We remain constructive on loan prices and hold that the total risk premium is likely to decline in the second half of the year - knowing that slackening economic conditions make this a more risky trade.

Defaults will continue to rise from the current low levels but the big default worry era remains when refinancing needs hit hard in 2012-2014, CreditSights says. “Making money in loans in the second half of 2008 is a play between the degree to which the fundamental risk premium expands versus the degree to which the technical premiums contract, if not shift to an outright positive.”
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News