Mish's Global Economic Trend Analysis Message Board

STOCKTALK

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 Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ajtj99 who wrote (88959)	10/23/2008 8:53:52 PM
From: SouthFloridaGuy	2 Recommendations Read Replies (5) of 116555

The spread that counts is not the Ted Spread/Libor anymore, it's the corporate credit spreads and those are a disaster. One can pick up senior bank debt at 15-17% UNLEVERED yields which begs the questions: A) Why buy equities which are lowest in the cap structure? B) What is the true value of equities based on those assumptions? The world doesn't have to end if equities fall, but equities must trade in some relation to debt. I'm not sure when people will realize this.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next