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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: mishedlo who wrote (88830)10/20/2008 5:56:36 PM
From: SouthFloridaGuy4 Recommendations  Read Replies (2) of 116555
 
Mish, the moves in corporate bonds have almost NOTHING to do with fundamentals anymore. It's been technical hedge fund selling ever since the systemic banking problems exploded in the past 2 months.

Indeed, in the loans space you can buy loans at recovery value with 15-17% coupons, senior in the cap structure. The risk is purely mark to market.

There is NO differntiation between asset rich, asset poor or very solvent versus semi-solvent companies. The correlations have been 1 for all securities.

There isn't a reason to even buy equities at this point because corporates are yielding so much.

This is Max Fear and Max Pain. It cannot and WILL NOT go on for much longer and I suspect given the moves in swap curves today, it won't.
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