k45

Which Is Safer: Investment Grade Corporate Debt or Government Bonds?

@screwed: GMAC Smartnotes are still AAA rated. :(

Why would you buy Treasuries now, you might as well put the money under a mattress. If you want to be ultra "safe", CDs at least have yields and should be just as safe as Treasuries.

Which Is Safer: Investment Grade Corporate Debt or Government Bonds?

bocaj21 speaks about AA and AAA rated bonds. But those ratings are faulty and the market doesn't trust them. Moodys/S&P/Fitch have shown themselves to be totally inept in their ratings.

GE bonds have continued to be rated AAA but the market hasn't trusted those ratings, even 2-5 year bonds have traded at yields 200 basis points higher than AA rated bonds of companies like Walmart or AAA rated JNJ. Obviously the rating agencies have (deservedly) lost credibility with the market. Now finally S&P put GE on credit watch for a possible downgrade in two years. Hah! By then it will be too late, either GE will have gotten past the problem or the bonds will be in junk status.

The rating agencies are only good anymore for closing the barn door after the horse is out.