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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (4807)	1/12/2004 7:35:50 AM
From: russwinter	Read Replies (3) \| Respond to of 110194

No wonder US money supply continues to plunge. Everybody wants to borrow in USD, and take the money somewhere else. From Bloomberg: Italy led four foreign governments that sold at least $1 billion each for a total of $5.5 billion of dollar-denominated debt last week. The extra yield, or spread, investors demand to own investment-grade corporate notes and bonds instead of Treasuries has more than halved to 91 basis points from a year ago and is the lowest since August 1998, according to Merrill Lynch & Co. A basis point is 0.01 percentage point. ``Many investors are seeking to capture those same kinds of returns in emerging market debt this year,'' said Zane Brown, director of fixed-income at Lord Abbott & Co. Sovereign issuers are rated similarly to companies in the U.S. His firm bought debt of Turkey and Venezuela, both rated below investment grade.