Corporate Bonds?

[34f3f3f]

Does anyone have ideas on what is going on in the corporate bond market? With rates so low, it’s probably not a good time to go into bonds as a safe alternative to cash, but has anyone had any problems with defaults, or stuck with dodgy bonds they can’t sell? Just interested to know what people’s experiences an views are.

[Coronita]

actually, I was asking myself the same question. Any bond experts?

[Coronita]

actually, I was asking myself the same question. Any bond experts?

[Coronita]

actually, I was asking myself the same question. Any bond experts?

[Coronita]

actually, I was asking myself the same question. Any bond experts?

[Coronita]

actually, I was asking myself the same question. Any bond experts?

[AK]

I’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.

[AK]

I’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.

[AK]

I’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.

[AK]

I’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.

[AK]

I’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.

[34f3f3f]

I 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.

[34f3f3f]

I 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.

[34f3f3f]

I 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.

[34f3f3f]

I 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.

[Author]

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