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Politics : Ask Michael Burke

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To: Richard Nehrboss who wrote (33418)10/6/1998 10:16:00 AM
From: Knighty Tin  Read Replies (3) of 132070
 
Richard, Companies with leveraged balance sheets are going to find their loans more expensive in the future. That's because rates are coming down for top credit ratings, but not for speculatively financed entities. We can thank Long Term Credit for that one. <G> As I've noted before, junk bonds have been in a bear market, so, despite rates supposedly going down, the risk premium is expanding. That's our banks. Closing the barn door after the horse is in the can of Alpo.

I am not adding oils right now as they have had a run. I like to buy after they've had a fall. Besides, I am pretty full in the production and services area.

MB
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