Bond Distress Highest Since ’09 as Sales Vanish: Credit Markets

[TGregg]

Eventually, they will crack down on "evil speculators" and try to legislate their way out of the credit crisis. I think perhaps that will be the last thing tried.

May 26 (Bloomberg) -- The percentage of corporate bonds considered in distress surged this week to the highest since 2009 as investors dumped debt of the neediest borrowers on concern that Europe’s fiscal crisis may make it harder for them to refinance.

Some 17 percent of junk bonds yield at least 10 percentage points more than Treasuries, up from 9.2 percent last month, Bank of America Merrill Lynch’s Global High-Yield Index shows. The jump is the biggest since the distress ratio rose 11 percentage points in November 2008, two months after Lehman Brothers Holdings Inc. collapsed. Bonds of MGM Mirage and Freescale Semiconductor Inc. joined the list in May.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQdz2ZS74lJE&pos=1

 

[EMRGLOBAL]

Ohh yea Greg, its coming. The last ditch effort before they have to face the music that we are heading in to the "In your Face" depression. No more lies, no more spin, no more OBAMA will save you.

INDU closed below 10,000.

Panic selling should set in the next few months as the INDU works its way to the lows of last year.

Inflation is gona kick in, as we see at the market when you buy food and gas.

Job numbers are gona suprise on the upside in losses.

I have more clients getting involved in our Direct Participation Programs, our Oil Wells we are drilling in texas..because they know what is about to happen. They are all Private Manufacture owners and have told me, this is and will be one of the worst 5 years the US has ever seen.

Hope they are wrong.