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If a bond issued at par goes to 116, that's not a bubble, says original (bond) gangster Dan...

If a bond issued at par goes to 116, that's not a bubble, says original (bond) gangster Dan Fuss. "If it goes to 250, that's a bubble, and that doesn't tend to happen with bonds." The strong performance of fixed income reflects a strong market, he says, but one with room yet to grow.
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Comments (3)
  • Okatie Jack
    , contributor
    Comments (92) | Send Message
     
    Agree.As profits and cash flow increase so does EBIT/interest coverage, a key indicator fior me. On the balance sheet side, keverage declines with increased orofits. Both can result in upgrades in bond ratings and higher prices.....NOT lower prices as some " bubble" analysts may suggest.
    28 Nov 2012, 11:34 AM Reply Like
  • bbro
    , contributor
    Comments (9729) | Send Message
     
    And duration risk???
    28 Nov 2012, 02:37 PM Reply Like
  • Petrarch
    , contributor
    Comments (753) | Send Message
     
    Dan would know better than most
    P
    29 Nov 2012, 09:21 AM Reply Like
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