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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (7064)	8/31/1999 3:25:00 PM
From: CMon	Respond to of 29987

There are some theories that relate credit spreads to implied risk of failure. While they're interesting, I think they're all bunk. Especially if you wish them to be capable of revealing the "true underlying default risk". I don't use them. The level of the globalstar bonds probably has as much to do with the fact that the junk market has never really recovered from last fall's debacle as it does the "true underlying risk". Suffice it to say that at a low 20's yield to maturity, the credit markets have been saying: "the risk default is not insignificant."