The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow RemovalIs the Fed's program of slashing interest rates to near zero having any beneficial effects? If we look back at the past three months investors have been running away from any investment with the least bit of risk. This is why we've seen such a massive shift into US Treasuries.
One market hardest hit by the financial crisis was the Corporate Bond Market which tumbled 35% in 2008. Now, however, with interest rates so low, investors are venturing out a bit to find investments with higher yields. In December new Corporate deals included $10 billion dollars of FDIC backed bonds by General Electric Co. (NYSE: GE), Devon Energy (NYSE: DVN) is selling five and 10 year notes, Brown and Foreman (NYSE: BF.B) is offering $250 million dollars in five year notes, and Tyco International (NYSE: TYC) offered $500 million dollars of 10 year notes. The major "active book-running" players are Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM) and Citigroup (NYSE: C)
What is an interesting dynamic to watch is that investors are always looking for better deals and higher returns. It seems they are tip toeing into the Corporate markets which indicates that there is some movement at unlocking this market for further activity.
Corporate bonds and notes offer higher yields than US Treasuries. Would you invest in this market?
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Reader Comments (Page 1 of 1)
1-07-2009 @ 9:18AM
BHarrison said...
The basic investigative principle is to: "FOLLOW THE MONEY . . ."
and see where it leads, right?
Congress has tacitly failed to provide or reqire the FIs and
corporations who have received "bailout monies" to provide FULL
DISCLOSURE and TRANSPARENCY in regard to the use of these monies . .
. AND actually, under the existing market conditions ALL corporations
listed on the stock markets whould be required to provide FULL
DISCLOSURE and TRANSPARENCY of their financial reports.
Without this, there can be no faith and confidence or INTEGRITY in
the markets or the corporations.
Likewise, with the Madoff Ponzi scandal, suddenly there is a "veil of
confidentiality" cast over these matters by our government agencies.
Any such "secrecy" and/or confidentiality can ONLY be perceived as
being nefarious attempts to protect other guilty individuals and
interests involved in this fraud.
This type of decit by our government regulatory agencies cannot be
tolerated; and any regulator who attempts such actions should be
summarialy charged with either misfeasance or malfeasance . . . and
should be fired and indicted. We, the people, will not tolerate such
abuses of our right to know.
Our government . . . Congress and the regualtory agencies . . . have,
for too long been the stooges for the special interests groups. The
INTEGRITY of the markets and corporations requires FULL DISCLOSURES
and TRANSPARENCY, subject to professional and publc scrutiny to
ferret out the frauds and unsound business practices that have caused
the collapse of our economic system.
What FOOL, in today's markets, would buy corporate stocks or bonds when there is still extensive lack of INTEGRITY in the financial reports of corporations?