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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (22916)	8/12/1999 11:04:00 PM
From: Joan Osland Graffius	Respond to of 99985

Haim, >>the corporate debt market is soaking up all the liquidity. Yes, I understand the corporations are going to the debt markets big time and they will pay for it. In turn the treasuries interest rates increase and the US tax payer picks up the tab. I wish I knew why they are all panicking. One could think we are going to have a long and deep recession and they are stockpiling cash to make it through the tough times. Of course we know what IBM is doing with most of their debt and cash from its' sale of businesses. <ggg> >>Now think what would you like to own the stock of GE that may return 10% to 15% a year or a hedged pair of treasury and GE debt issued at 100 to 150 bp spread and the pair trade returning 20% a year. If the risk/reward ratio is in your favor you go for it. Joan