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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: Johnny Canuck who wrote (34939)10/27/2001 7:59:22 PM
From: Johnny Canuck  Read Replies (1) | Respond to of 68426
 
What the market is saying versus what bonds are saying:

But wait a moment. The bond market begs to differ. If share prices are discounting a recovery next year, why the divergence in the corporate bond market? The difference between yields on European corporate debt and relevant government notes, called spreads, have widened considerably. There they remain. That means corporate-bond investors are worried about balance sheets and the ability of companies to withstand the coming economic slowdown. Moody's recently said a deterioration in corporate credit ratings is expected to persist into 2002.

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