Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (28993)	6/11/2010 9:48:12 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 71409

well I think in most cases the balance sheet concerns are overdone; of course - since the banking crisis I know how little corporate bonds can be worth in a stress scenario and how off bond prices are currently (I mean, spreads are too tight, in general). So there´s a lot of downside of course. But a BK? I test several ways to make a cut... one being calendar spreads where I sold the overpriced July options. and covered with later maturities out. As volatilities melt from their spike, the spreads begin to show gains.