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Strategies & Market Trends : HONG KONG

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To: Ron Bower who wrote (2139)	8/22/1998 6:06:00 PM
From: MikeM54321	Read Replies (2) of 2951

"Most interesting post. Don't quite comprehend all of it, but enough to see that big reptile has been bearing offspring that are traveling to distant shores." Ron, My sentiments exactly (about not comprehending). Maybe we can figure it out. Here's my guesses: "Fear of a deterioration in the creditworthiness of borrowers around the globe is spawning a sharp sell-off in U.S. corporate bonds and other assets." Translates to: Suddenly bond investors are scared that corporate debt (foreign, I think?) is in jeporady because it won't be paid back as country after country sinks into a recession. "The yield spread on U.S. investment-grade corporate bonds widened about 18 basis points over comparable Treasuries Friday in one of the largest single one-day moves ever.." Translates to: Investors sold private corporate bonds and purchased US government bonds during this panic. "And emerging market bonds, which have been caught in a downward spiral for the last week, lost anywhere from two to 12 points in price," Translates to: No one wants to touch US corporate bonds that are issued to ANY foreign country because it's way too risky. Tom Yarnall, How'd I do? Please feel free to correct any errors. Thanks, MikeM(From Florida)

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