InnocentsAbroad

Bond Expert: Thursday Wrap

Possibly because, in a still fragile credit market, many corporate bonds are still behaving like equities. So -- if the equity markets really recover, bonds will be back to behaving like bonds.


On Jun 04 05:14 PM igggy wrote:

> I don't understand why the corporate bond market is so stable when
> the treasuries are falling apart. It's not like corporate bonds can
> avoid the carnage of higher interest rates. What am I missing?<br/>
>
> I agree with Macro_Man, the moment the stock market drops, we'll
> have a huge rally in treasuries. I wouldn't be surprised if we revisit
> 3% yields on the long bond. But what do I know? I started shorting
> the long bond last October which was pretty dumb in hindsight.