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To: loantech who wrote (524)	2/1/2003 11:20:22 AM
From: Crimson Ghost	Read Replies (2) \| Respond to of 1210

Junk bonds are more akin to stocks in many ways than they are to investment grade bonds. The prime mover of their price is perceived default risk, although interest rate trends obviously also are important. Investment grade bonds, by contrast, move almost entirely with interest rate trends. To the extent that Fed debt monetization and the resulting inflation reduce perceived default risk -- junk bonds will benefit. Although junk bond yield spreads from investment grade bonds have narrowed considerably of late -- they still are very high.