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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (17867)	3/6/2002 4:15:24 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 23786

>>Credit spreads are what credit market investors create.<< Which reflects perceived risk. When a corporation is saddled with heavy debt loads, the cost of servicing the debt becomes worrisome. It seems reasonable to assume that credit markets like reasonable debt to equity ratios. And yes, things are better since late 1999, the weakest corporations are being purged. We've talked about consolidation being essential to redistribute "growth" from dwindling demand. Smaller pie, but fewer slices too. Time will tell if the next wave of buying is sustainable and those that remain can continue on a path of earnings growth. I don't think we'll have a full understanding until the fourth quarter...but for now the market is betting on adequate growth.