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October 14, 2008 at 7:59 AM #14205October 14, 2008 at 8:33 AM #287082
CoronitaParticipantactually, I was asking myself the same question. Any bond experts?
October 14, 2008 at 8:33 AM #287378CoronitaParticipantactually, I was asking myself the same question. Any bond experts?
October 14, 2008 at 8:33 AM #287395CoronitaParticipantactually, I was asking myself the same question. Any bond experts?
October 14, 2008 at 8:33 AM #287421CoronitaParticipantactually, I was asking myself the same question. Any bond experts?
October 14, 2008 at 8:33 AM #287427CoronitaParticipantactually, I was asking myself the same question. Any bond experts?
October 14, 2008 at 5:37 PM #287299AK
ParticipantI’m watching a few high-yield (read: junk) bond funds at the moment.
The consensus seems to be that junk bond prices rise with the general market due to unfounded optimism about borrowers’ solvency. Likewise junk bond prices tank (and effective yields rise) as equities plunge and perceived risk rises.
Of course the risk was always there … it’s just being priced appropriately now.
October 14, 2008 at 5:37 PM #287598ParticipantI’m watching a few high-yield (read: junk) bond funds at the moment.
The consensus seems to be that junk bond prices rise with the general market due to unfounded optimism about borrowers’ solvency. Likewise junk bond prices tank (and effective yields rise) as equities plunge and perceived risk rises.
Of course the risk was always there … it’s just being priced appropriately now.
October 14, 2008 at 5:37 PM #287615ParticipantI’m watching a few high-yield (read: junk) bond funds at the moment.
The consensus seems to be that junk bond prices rise with the general market due to unfounded optimism about borrowers’ solvency. Likewise junk bond prices tank (and effective yields rise) as equities plunge and perceived risk rises.
Of course the risk was always there … it’s just being priced appropriately now.
October 14, 2008 at 5:37 PM #287642ParticipantI’m watching a few high-yield (read: junk) bond funds at the moment.
The consensus seems to be that junk bond prices rise with the general market due to unfounded optimism about borrowers’ solvency. Likewise junk bond prices tank (and effective yields rise) as equities plunge and perceived risk rises.
Of course the risk was always there … it’s just being priced appropriately now.
October 14, 2008 at 5:37 PM #287646ParticipantI’m watching a few high-yield (read: junk) bond funds at the moment.
The consensus seems to be that junk bond prices rise with the general market due to unfounded optimism about borrowers’ solvency. Likewise junk bond prices tank (and effective yields rise) as equities plunge and perceived risk rises.
Of course the risk was always there … it’s just being priced appropriately now.
October 15, 2008 at 8:33 AM #28786034f3f3f
ParticipantI found this on the wall street journal.
“Sectors most helped by the government’s plans to bolster the banking system got the biggest boosts Tuesday. Corporate bonds issued by banks jumped in value and their yields fell sharply, while interest rates on short-term IOUs known as commercial paper decreased.
It could be weeks or months before money flows freely again in the short-term debt markets and corporate-bond yields fall enough to allow banks to fund themselves at attractive rates. That is a necessary step for banks to resume lending to corporations, small businesses, municipalities and individuals.
Mortgage bond rates, though significantly higher than they were a month ago, fell slightly. Struggling companies, some of which have been pushed to the brink because of the tight credit markets, saw yields on their debt fall Tuesday as prices rose, but these firms are still effectively shut out of the debt markets because of high borrowing costs.”
I guess that means that if you still have corporate bonds in financials, you are probably in the clear for the time being.
October 15, 2008 at 8:33 AM #287891ParticipantI found this on the wall street journal.
“Sectors most helped by the government’s plans to bolster the banking system got the biggest boosts Tuesday. Corporate bonds issued by banks jumped in value and their yields fell sharply, while interest rates on short-term IOUs known as commercial paper decreased.
It could be weeks or months before money flows freely again in the short-term debt markets and corporate-bond yields fall enough to allow banks to fund themselves at attractive rates. That is a necessary step for banks to resume lending to corporations, small businesses, municipalities and individuals.
Mortgage bond rates, though significantly higher than they were a month ago, fell slightly. Struggling companies, some of which have been pushed to the brink because of the tight credit markets, saw yields on their debt fall Tuesday as prices rose, but these firms are still effectively shut out of the debt markets because of high borrowing costs.”
I guess that means that if you still have corporate bonds in financials, you are probably in the clear for the time being.
October 15, 2008 at 8:33 AM #287887ParticipantI found this on the wall street journal.
“Sectors most helped by the government’s plans to bolster the banking system got the biggest boosts Tuesday. Corporate bonds issued by banks jumped in value and their yields fell sharply, while interest rates on short-term IOUs known as commercial paper decreased.
It could be weeks or months before money flows freely again in the short-term debt markets and corporate-bond yields fall enough to allow banks to fund themselves at attractive rates. That is a necessary step for banks to resume lending to corporations, small businesses, municipalities and individuals.
Mortgage bond rates, though significantly higher than they were a month ago, fell slightly. Struggling companies, some of which have been pushed to the brink because of the tight credit markets, saw yields on their debt fall Tuesday as prices rose, but these firms are still effectively shut out of the debt markets because of high borrowing costs.”
I guess that means that if you still have corporate bonds in financials, you are probably in the clear for the time being.
October 15, 2008 at 8:33 AM #287844ParticipantI found this on the wall street journal.
“Sectors most helped by the government’s plans to bolster the banking system got the biggest boosts Tuesday. Corporate bonds issued by banks jumped in value and their yields fell sharply, while interest rates on short-term IOUs known as commercial paper decreased.
It could be weeks or months before money flows freely again in the short-term debt markets and corporate-bond yields fall enough to allow banks to fund themselves at attractive rates. That is a necessary step for banks to resume lending to corporations, small businesses, municipalities and individuals.
Mortgage bond rates, though significantly higher than they were a month ago, fell slightly. Struggling companies, some of which have been pushed to the brink because of the tight credit markets, saw yields on their debt fall Tuesday as prices rose, but these firms are still effectively shut out of the debt markets because of high borrowing costs.”
I guess that means that if you still have corporate bonds in financials, you are probably in the clear for the time being.
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