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

To: Crimson Ghost who wrote (31979)	2/21/2002 7:38:50 PM
From: ajtj99	Read Replies (2) \| Respond to of 99280

Isn't the default rate on junk bonds up to 10% now, George? I thought I heard or read that yesterday.

To: Crimson Ghost who wrote (31979)	2/21/2002 10:37:53 PM
From: waverider	Read Replies (1) \| Respond to of 99280

George I have been watching Fidelity's high yield fund for that very reason. It broke into new lows yesterday. wr

To: Crimson Ghost who wrote (31979)	2/21/2002 11:32:46 PM
From: seminole	Respond to of 99280

I thought junk bonds were correlated to corporate earnings? Corporate earnings are a lagging indicator to the economy. Corporate revenues increase before their earnings increase, as the economy improves, due to continued price competition and excess production capacity. Also, earnings are reported or delayed until three months of economic activity has occurred. Junk bond have performed poorly for over a year (-15% and year to date -3%). Ain't no new signal here. Unemployment and corporate default both continue even after the economic improvement has begun to occur.