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.

Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Lone Ranger who wrote (2849)	2/8/2002 9:44:45 AM
From: GVTucker	Respond to of 3770

I think that you are correct that the bond market does often lead the stock market. IMO one of the biggest reasons for this is that insider trading is a lot easier to get away with in the bond market. Thus, a lot of nonpublic information gets reflected in the bond market, while it takes longer in the stock market as the same information slowly filters out. What is clear is that when Tyco drew down the bank lines on Monday the bond market saw that as an extreme negative. If things settle down, no question that the bonds move back to par. Heck, it's one year paper with a 12%+ yield right now, if Tyco stabilizes it's got to go back to par in a hurry.