Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Joan Osland Graffius who wrote (54127)	6/14/2000 8:46:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

Joan, as long as these spreads continue to widen, or even if they just stay where they now are, we have to assume that there is no liquidity for corporate debt issuance, and thus the financing of stock buybacks will be hampered. furthermore, this is an indication of an ever more acute perception of credit risk by the markets. so these spreads are in fact telling us, default risk has increased, and it is quite astonishing that the stock market seems rather complacent in spite of this. hb