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

To: mishedlo who wrote (75191)	12/10/2006 1:50:44 PM
From: Sunny Jim	Read Replies (1) \| Respond to of 110194

Corporates and junk are both going to get crucified in the upcoming debacle. So will asset backed stuff of all kinds. Treasuries will rise in response. I expect to see 3.0%-3.5% on the long bond (if not lower)as part of the unwinding of risk in corporates and MBS. Short term swings up in treasury yield are of no concern to me now. I'm confused. If corporates and junk are going to get crucified, I assume that means people will be selling them, thus causing prices to drop. Wouldn't that cause the rates to go up, not down?