Comments on: Junk Bond Yields Up Sharply http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html Sun, 22 Nov 2009 02:09:47 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26340 Anonymous Thu, 20 Nov 2008 16:38:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26340 "One way to increase demand in the corporate markets would be to exempt corporate interest payments from some level of taxation"<br/>Anonymous said<br/><br/>Good thought, but as Mark Twain observed:<br/>"I am not so worried about the return ON my money, rather the return O my money"<br/><br/>I think this sums up the horrors in the CB market today. “One way to increase demand in the corporate markets would be to exempt corporate interest payments from some level of taxation”
Anonymous said

Good thought, but as Mark Twain observed:
“I am not so worried about the return ON my money, rather the return O my money”

I think this sums up the horrors in the CB market today.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26286 Anonymous Thu, 20 Nov 2008 05:17:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26286 ajw,<br/><br/>Looks like Russ's investments got stuck in the tar pit too. ajw,

Looks like Russ’s investments got stuck in the tar pit too.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26285 Anonymous Thu, 20 Nov 2008 04:58:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26285 Given a lack of liquidity and a high degree of risk aversion it isn't surprising at all to see these sort of prices. With high grade corporate bonds trading at 550 and up why shouldn't junk be in the high teens or low 20's given the economic environment.<br/><br/>Personally, I find it refreshing that investors seem to be pricing risk back into the market. Given a lack of liquidity and a high degree of risk aversion it isn’t surprising at all to see these sort of prices. With high grade corporate bonds trading at 550 and up why shouldn’t junk be in the high teens or low 20’s given the economic environment.

Personally, I find it refreshing that investors seem to be pricing risk back into the market.

]]> By: ajw http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26284 ajw Thu, 20 Nov 2008 04:29:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26284 Nice, Skippy, except Russ Winter beat you to it by a month or two.... Nice, Skippy, except Russ Winter beat you to it by a month or two….

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26280 Anonymous Thu, 20 Nov 2008 03:52:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26280 William is right. We have a on of McDonalds, Burger Kings, Taco Bells everywhere. How can they ever all survive??????<br/><br/>http://brutalhonesty08.blogspot.com/ William is right. We have a on of McDonalds, Burger Kings, Taco Bells everywhere. How can they ever all survive??????

http://brutalhonesty08.blogspot.com/

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26279 Anonymous Thu, 20 Nov 2008 03:50:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26279 CRE and commercial loans are getting ready to tank! In the rush to lend money, all real lending standards were dropped. William at Brutal Honesty says it well.<br/>http://brutalhonesty08.blogspot.com/ CRE and commercial loans are getting ready to tank! In the rush to lend money, all real lending standards were dropped. William at Brutal Honesty says it well.
http://brutalhonesty08.blogspot.com/

]]> By: Anonymous http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply.html#comment-26278 Anonymous Thu, 20 Nov 2008 03:39:00 +0000 http://www.nakedcapitalism.com/2008/11/junk-bond-yields-up-sharply/#comment-26278 Equities are falling because companies are running out of working capital. The corporate markets are dysfunctional. Risk aversion by portfolio managers and investors has either eliminated demand or raised the cost of capital.<br/><br/>One way to increase demand in the corporate markets would be to exempt corporate interest payments from some level of taxation. The amount and duration would need to be structured, but providing an incentive for participants to renter and start buying again is key to any solution. Maybe demand can be stimulated on an after tax basis and money would begin to flow again. Equities are falling because companies are running out of working capital. The corporate markets are dysfunctional. Risk aversion by portfolio managers and investors has either eliminated demand or raised the cost of capital.

One way to increase demand in the corporate markets would be to exempt corporate interest payments from some level of taxation. The amount and duration would need to be structured, but providing an incentive for participants to renter and start buying again is key to any solution. Maybe demand can be stimulated on an after tax basis and money would begin to flow again.

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