Monday, Jul 30, 2007
The smart money is heading for the exit
bloomberg.com: Corporate Bond Risk Soars as Subprime Mortgage Losses Spread
Investors are fleeing corporate credit at the fastest pace in seven years, Barclays Capital said in a report. More than 40 companies have abandoned or reworked loan and bond sales as yield premiums on corporate bonds rose to the highest relative to U.S. Treasuries since 2003.
``It's pure fear,'' said Gary Jenkins, a partner at London- based hedge fund Synapse Investment Management, which manages $650 million of debt assets. ``It's fear of the unknown, fear of hedge funds unwinding, fear of knock-on effects of the subprime meltdown.''
BTL landlords you were warned, worldwide credit crunch = financial armageddon
Posted by dobber @ 04:44 PM (232 views) Add Comment
3 Comments
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1. tyrellcorporation said...
Still no seismic movements in the markets though. I can only think that in fact traders don't actually have an idea about how much debt has been re-heated, re-sold, re-packaged, and then re-sold, etc, etc. Like rabbits in headlights they are mesmerised, waiting for events to unfold before they make their move.
2. lvmreader said...
You may be shocked at just how dumb most traders are.
You would be even more shocked at what gossips analysts are - many are little better than teenage girls all buying the same editions of Grazia and Hello to be told what to wear at the next party.
Lemmings.
But then again, maybe that doesn't surprise you.
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