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

To: CalculatedRisk who wrote (94485)	5/22/2008 5:51:41 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 110194

Moody's Forecast Moody's anticipates defaults will quadruple to 6.1 percent in about a year. Bondholders may fare worse in this wave of bankruptcies than they have historically. Rather than receiving an average 42 cents on the dollar back, owners of a third of high-yield, high-risk bonds rated B+ or lower may get no more than 10 cents, according to a study by New York-based Fitch Ratings last month. About 22 percent are likely to get 11 cents to 30 cents. Bondholders rank behind a record $2.2 trillion of bank loans that companies obtained in the past three years, reducing their claim to company assets in a default. bloomberg.com