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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: Doug Shapiro who wrote (11605)12/8/2001 9:37:43 AM
From: Crimson Ghost  Respond to of 99280
 
Junk bonds respond primarily to changing perceptions of default risk and are akin to equities in many ways. Note that junk bonds were smashed the past 2 years as high quality bonds soared in price. We can expect just the opposite the next few years as the economy starts to improve. For example, junk bonds have remained flat or dropped just slightly the past few days as high quality bonds were massacred.