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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: t4texas who wrote (5831)	3/14/2002 3:27:25 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

I'd say that GE sees rates working their way higher over the next 6 to 12 months, and they also realize that with the liquidity concerns that we have witnessed in the marketplace, it never hurts to access the Credit Markets and move some of their borrowings further out on the yield curve. -------- 08:04 ET 10-year: -7/32..5.306%....GNMAs: Unch....$-¥: 128.56 Of the four 8:30 ET economic releases business inventories and sales is the most relevant. The 1.1% jump in sales already seen in the data combine with an expected 0.4% drop in inventories to leave a return to the lowest inventory/sales ratio in at least 15 years and most likely a record low. Dead low inventories has tightened the relationship between new orders and production given the lack of existing stock to fill orders. The downtrend in Initial claims for unemployment benefits has slowed. Claims have held in a 20K range over the last six weeks centered at 371K. Import and export prices provide a little direction for international trade as the current account adds financial transactions to the trade data to leave the broadest measure of US global transactions.

To: t4texas who wrote (5831)	3/14/2002 9:29:52 PM
From: Hawkmoon	Respond to of 33421

From what I understand GE generates almost half of its revenues from financing activities. So having access to inexpensive capital, with the likelihood that rates will only go up from here, is probably pretty smart. They can use it to underpin their own financing activities, increasing their profit spread. Hawk

To: t4texas who wrote (5831)	3/20/2002 5:48:35 PM
From: t4texas	Read Replies (1) \| Respond to of 33421

now we know why ge wanted all that cheap bond money. that short term "signature loan" commercial paper needed more real money coverage. bill gross really burned 'em today. when i heard yesterday or day before yesterday that ge was going for another $50B shelf offering, i figured that the $11B bond investors had been informed in their prospectus. well bill gross said today that those $11B bond buyers got treated as bagholders. i guess it is not so much fun to play turnabout is fair play for the institutions.