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

To: Paul Senior who wrote (4891)	8/30/1998 11:30:00 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78516

PAUL: I hope you're right about continuing availability of liquidity to marginal borrowers and companies with higher debt levels, cause if there is a severe crunch these "value" stocks are going to become even better values. The shift in risk and liquidity preferences in the credit markets is nevertheless quite marked. Found a 9.5% outperformance of US treasure funds over High Yield bond funds in the last 30 days. This price change on wall street, if it holds, could soon hit mainstreet for marginal borrowers. On the other hand if the Russian thing chills and the stock market stabilizes then I would agree that liquidity will bring down risk premiums. Thanks for your feedback and comments. Respectfully, Bob