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To: Giordano Bruno who wrote (98838)	5/1/2001 5:30:08 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

<<Moody's will dig just a little deeper...>> About time!<ng>

To: Giordano Bruno who wrote (98838)	5/2/2001 3:36:02 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

note: the pace of high yield defaults and corporate credit distress hasn't abated one bit. while spreads for high quality paper have come in quite a bit, we have now some 620 billion in high yield debt outstanding vs. 180 billion in 1990, the last period of severe distress. the trailing 12 month default rate is now at 8,5% , and a further 30% of high yield debt is officially 'distressed'. 19% of all junk bonds in issue are telco debt. the amount of distressed debt is 8 times larger than in '98. bank loan defaults are accelerating sharply as well.