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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (57506)	7/6/2016 8:56:04 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78702

Lol - I see AGN is the first common stock in their last Q. Hopefully they did better research on dividend sustainability for the others. I read in WSJ today that corporate debt now accounts for ~25% of the total. The wolf of ZIRP has cornered everyone in CLOs and their underlying. If those prove unsafe, there is nowhere else to go. As I mentioned last year, when the VRX/ AGN collapse is complete I expect that to coincide with a significant widening in IG spreads. The VRX part happened but the final outcome is a tug-of-war between the ECB's monetization programme and front-loaded debt servicing programmes. It will be interesting to see who wins. But if senior notes go bad the preferred is wiped out. I'm not convinced that the 5% yield is a value, or that the Aaa status is a meaningful predictor of dividend coverage.