Loans vs. Bonds Relative Value: Week of May 7

Heat seeking in both bonds and loans was the dominant theme, with the usual suspects continuing to rip. Comparing current levels on garbage credits like Neiman Marcus, Sealy and TRW with their spreads 3 months ago and one can only question the sanity of even the credit market. Unlike last week when there were just three Fox Two instances, targeted at Huntsman, Graham Packaging and Neiman Marcus, this past week's IR-signature tracking selection is broader and even junkier.

"Solid" names like Compucom, Huntsman, Neiman Marcus, Sealy and TRW continued their ripfest tighter in bond land, and in many instances, in loans as well, while Aeroflex loans where the best relative secured performer. The only bonds widening in the entire 30 name universe were those of Michael Foods, and Constellation Brands - obviously consumer staples have every right to be seen as the riskiest last week when the rolling squeeze among garbage credits was doing all it could to flatter the equity markets.

Comments

[Eric Washburn:]

Who would follow this person, I mean really posting anamously, continually ranting? Why would I want to know who I am reading? Maybe I would want to know the past history, qualifications. Anybody can rant anamously!

May 11 04:10 PM

[123Anonymou...:]

it ANONYMOUSLY,Eric
please do not follow Tyler, and do not post comments unless you learn proper spelling and grammar


On May 11 04:10 PM Eric Washburn wrote:

> Who would follow this person, I mean really posting anamously, continually
> ranting? Why would I want to know who I am reading? Maybe I would
> want to know the past history, qualifications. Anybody can rant anamously!

May 11 11:42 PM

[Jasper M:]

Eric,
I believe the technical term is "meritocracy" - we Follow him because of his performance.
Speaking strictly for myself, I have learned a lot of things far sooner than I would have otherwise by paying attention to Tyler.

But I think you are missing the bigger picture: Tyler's various reports tend to expose non-sustainable practices in our financial markets. Especially things that the "mainstream press" appears loathe to discuss in any sort of balanced manner (if at all). Yes, his delivery is full of inside jargon, and that makes it harder for some to digest. And yes, he is not shy about a bit of editorializing at the expense of crooked practices. The first habit encourages us to further our education, and the second (I find) just entertaining.

So, Mr. Washburn, a friendly challenge - DO follow Tyler. You'll be a better man for it.

May 12 03:19 AM