dealbook.blogs.nytimes.com - 12/5/2008
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Junk bond peddlers should have taken a vacation in November. That’s because there were no — count ‘em, zero — high-yield corporate bond deals done last month on the entire planet, according to data from Thomson Reuters. That is the worst showing since March 1991, when the ...
ritholtz.com - 12/7/2008
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ritholtz.com —
“These errors make us look either incompetent at
credit analysis or like we sold our soul to...
the devil for revenue, or a little bit of both.” — A Moody’s managing director responding anonymously to an internal management survey, September 2007. ...
(more)
Blaming Moody’s
economistsview.typepad.com - 12/11/2008
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economistsview.typepad.com —
Ratings agencies are supposed to solve market failures,
not create them. The market failure arises because in...
most cases it's prohibitively costly for individual investors to collect and analyze the information they need to make informed judgments ...
(more)
Rubber Stamp Agencies
bespokeinvest.typepad.com - 12/5/2008
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bespokeinvest.typepad.com —
If you are a company with less than
perfect credit looking to borrow money, hopefully you have...
made other plans. As shown below, based on data from Merrill Lynch, high yield spreads keep rising and have shown no signs of letting up. As of Wednesday's ...
(more)
High Yield Credit Spreads Out of Control
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Further reading
FT Alphaville —
... for the deflationary monster the world now faces. They help create it. And the fight is going to be long and bloody - High yield, high anxiety - The ...
Junk Bonds Out Of Fashion In A Big Way
Trader Daily Combined Feed —
... That’s higher than the record of 15.4 percent set in 1933 during the Great Depression.
That might seem extreme, considering that the default rate on high-yield debt worldwide in October was just 2.8 percent. (It was 3.3 percent in the United States.)
But Moody’s forecasts the default rate on junk bonds will increase to 4.3 percent worldwide (5 percent in the United States) this month, and 10.4 percent (11 percent in the United States) by November 2009.
Continue reading on NYTimes.com
Friday morning links
The Mess That Greenspan Made —
... bailouts - CNN/Money California May Pay With IOUs for Second Time Since Depression - Bloomberg America's 'other' auto industry - Christian Science Monitor AP IMPACT: Some bailout holdings down $9 billion - AP Lower mortgage rates no silver bullet - CNN/Money MARKETS/INVESTING Oil near 4-year lows on dire economic news - AP Commodity Fundamentals Are ‘Unimpaired,’ Rogers Says - Bloomberg High Anxiety About High Yield - NY Times When the golden eggs run out - Economist ...
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Motorola: It’s Junk, Says S&P —
BARRONS.com: Tech Trader Daily 12/5/2008
Standard & Poor’s today cut its long-term corporate credit rating on Motorola (MOT) by two notches to BB+, from BBB, down to junk bond territory.
In cutting its rating, S&P cited the troubles in the company’s mobile device ...
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