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To: Ironyman who wrote (95964)9/25/2003 1:07:52 PM
From: Real Man  Respond to of 116927
 
So? I think they bounced from the trend line. I really think the bull market in bonds is over, but so far they succeeded to arrest the BK, which was about to happen in early August. I mean, the collapse of 150 Trillion interest rates derivatives pyramid. Now they are dumping stocks to get further away from BK. It is coming, though. There is no deflation, just 20% per year printing, and lies, lies, more lies from the Fed. Bond holders lost 5 years of Yield in 1.5 months in June-July + 5 more years of Yield when the dollar collapsed 30%. Why are they still buying? No clue here... But perhaps, it's the Fed.



To: Ironyman who wrote (95964)9/25/2003 1:14:55 PM
From: Real Man  Respond to of 116927
 
Now, the fun part. Banks sold more than 500 billion in junk bonds insurance this year. They were selling this like hot cakes. Vastly popular derivative. For a fee, of course. Guess who takes the risk if someone can't pay? And, how much risk? I think it's equal to notional amount here.