Tuesday, Apr 22, 2008
The bond markets seem to be pricing fixed income investments as if the economy were facing Armageddon
fundstrategy: Judgement day
The economy is facing Armageddon. This is what the prices of corporate bonds are telling investors. The spreads on investment grade bonds are pricing in default rates that are four times as high as the previous peak since 1970. This should not be surprising. The corporate bond market has been battered by the credit crunch over the past 10 months. Liquidity has dried up and forced sellers have driven spreads wider.
Posted by jack c @ 04:25 PM (180 views) Add Comment
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