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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (26916)	4/5/2005 2:49:21 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Moody's downgraded GM to Baa3 from Baa2 and that caused a brief dip in the markets. Bear in mind that Lehman is trying to protect their corporate bond business and has stated that at least two (possibly) 3 of the agencies that matter have to downgrade GM before bond funds stupidly in those GM issues are forced to sell. That leaves Fitch and the S&P left to downgrade before non-junk corporate bond funds are forced to sell. Is that one notch above junk or is that junk? Did Moody's have a "notch to spare"? Mish