IDS World Markets Mon 29th September 08

[Sudaca]

Federal Undersight Commission for Ko-prosperity

693545[/snapback]

 

 

Federal Undersight Commission for Ko-prosperity External Division

[Trader Joe]

Trader Joe's favorite investment sector highlighted in today's WSJ...

_________________________________

 

Corporate Bonds Become Fund Managers' Favorite

 

...Instead of stocks, some money managers looking for a safer way to bet that the financial system won't crater are buying corporate bonds. The credit crisis makes it more expensive for companies to borrow, which means higher yields for investors as long as the companies remain solvent.

 

...Many bonds rated single-A or triple-B, in the lower range of investment grade, currently yield more than 7%, even as fears of corporate failures are abating.

To get that kind of return from stocks given current prices, says Jack Ablin, chief investment officer at Harris Private Bank in Chicago, you would have to assume profit gains of 12% or more a year, based on current ratios of prices to earnings.

"Why take that risk?" Mr. Ablin says. "I would rather clip a 7.1% yield using a bond than hope for a 7.1% return from a 2% dividend yield and a hope that the stock price rises 5.1%." He says junk bonds look attractive as well, for similar reasons. Indeed, junk bonds have been yielding nearly 10 percentage points over comparable Treasurys in recent days, according to Merrill Lynch.

 

...Ms. Gaffney has been moving some money out of Treasury bonds, where she had parked it for safety, and into triple-B and single-A bonds. She figures that the default risk is low now, especially if you own a broad range of bonds, and the yields are unusually high.

 

[DrStool]

ah, i sink vee's clashing.

[Jetlag]

Bring them back!

693544[/snapback]

 

bring HIM back

 

 

[crooked_analyst]

Let's see if we can get to the Promised Land of 10,754 where we will magically bounce again....

[joe3pack]

SLV making what appears to be that right inverse shoulder i keep blathering about. trying to pick up a few thousand shares with an "all or none" order (makes for easier bookkeeping), but the bid keeps moving away by a few cents at a time. bastids.

[DrStool]

If there's a weak bounce beginning after 10:30 and lasting till around 2:20, I might just short the crap out of this market. If they bounce hard here, might also be a short setup.

 

This ish truly amazhing. May be my thoushand pointsh down day.

[DrStool]

3 day cycle projection on spx has not dropped with the index, but the 5 hr has dropped to 1165. I have no idea what to make of that other than that the market is moving to fast for the slow indicators to keep up.

[crooked_analyst]

If there's a weak bounce beginning after 10:30 and lasting till around 2:20, I might just short the crap out of this market. If they bounce hard here, might also be a short setup.

 

This ish truly amazhing. May be my thoushand pointsh down day.

693553[/snapback]

 

Wish di-erection?

[TURK]

If there's a weak bounce beginning after 10:30 and lasting till around 2:20, I might just short the crap out of this market. If they bounce hard here, might also be a short setup.

 

This ish truly amazhing. May be my thoushand pointsh down day.

693553[/snapback]

 

 

Where's Drano?

 

Oh well.....I'll fill in

 

NOOOOOOOOOOOOOOOOOOOOOOO

 

DOW 100,000!!

[joe3pack]

Federal Undersight Commission for Ko-prosperity External Division

693547[/snapback]

[TURK]

Gold jumps 900 with authority!

 

let'see if it holds

[joe3pack]

If there's a weak bounce beginning after 10:30 and lasting till around 2:20, I might just short the crap out of this market. If they bounce hard here, might also be a short setup.

 

This ish truly amazhing. May be my thoushand pointsh down day.

693553[/snapback]

thoushand pointsh down on the ash&pee! [rubbing palms with glee]

[Sudaca]

The credit crisis makes it more expensive for companies to borrow, which means higher yields for investors as long as the companies remain solvent.

 

...Many bonds rated single-A or triple-B, in the lower range of investment grade, currently yield more than 7%,

693548[/snapback]

 

I agree that there's value in many corps out there, but it's a treacherous terrain filled with land mines.

 

If they can't refinance short-term CPs, the word "restructuring" will surface pretty soon. I'm not sure if there are cross-default clauses, but the noise could get ugly.

[cwd]

It looks like the gold market has been listening to Steve LIESman. The FED will do what ever is necessary to save the banks. Like a ZERO interest rate policy.