Monday, Oct 20, 2008

Companies are going to have trouble raising funds

Mish: Armageddon in Corporate Bonds

Credit markets have fallen far, yet investors are still selling. Prices of loans rated below investment grade declined to a record low 66.1 cents on the dollar, virtually guaranteeing investors get their money back, based on historical recovery rates. Yields on corporate bonds show investors expect 5.6 percent of the market to go bust, the highest default rate since the Great Depression.

Posted by drewster @ 11:09 PM (215 views) Add Comment

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