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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (33503)	5/17/2000 4:30:00 PM
From: MythMan	Read Replies (2) \| Respond to of 42523

We've been talking THAT forever too...

To: pater tenebrarum who wrote (33503)	5/17/2000 5:01:00 PM
From: SeaViewer	Read Replies (1) \| Respond to of 42523

The brokers are doing pretty well today. People are buying because of their low pe?

To: pater tenebrarum who wrote (33503)	5/17/2000 7:17:00 PM
From: Lymond	Read Replies (1) \| Respond to of 42523

Heinz, groaning indeed. Investment-grade issuers held off during April based on hope that conditions will ultimately improve. But many are now throwing in the towel and trying to get deals done under whatever terms the market will bear. With sentiment so poor, spreads will continue to widen so long as borrowers' demand for funds remains high. Why are companies so anxious to borrow? For typical bull market reasons: Perceived investment returns exceed the imputed cost of capital. Ergo, the current investment boom in capital equipment. The challenge posed by the internet to so many companies' business models is undoubtedly a factor as well. Time is of the essence; invest or die, so many think. Layer on the desire for funds to finance share buybacks. A wonderful mix indeed, which clearly bodes well for corporate credit quality. <sg> Until borrowing demand ebbs, spreads will remain under pressure, notwithstanding the possibility of a bounce back rally now and then.