The Great Unwind Continues. . .

[TGregg]

Investors around the world are ditching corporate bonds at the fastest pace in 19 months and turning to the safety of Treasuries amid signs that the global economic recovery is being derailed. Interbank lending rates are the highest since July, new bond sales worldwide have plunged 61 percent this month and a weeklong rout in stocks deepened today, with U.S. benchmark indexes losing the most in more than a year.

“LBO’s need growth to de-lever. They also need access to capital markets to continue pushing out maturities,” said Jason Rosiak, the head fund manager overseeing $2.7 billion at Pacific Asset Management, an affiliate of Pacific Life Insurance Co. in Newport Beach, California.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQZkc.kesuig&pos=4

 

[QuikrRetirement]

Quote from TGregg:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQZkc.kesuig&pos=4

Safety of treasuries? If I were a buy and holder of these instruments, I think part of me would rather own Apple, Google and IBM corp bonds than Tbonds, especially in a large number of countries.

 

[bl33p]

TBT decay is interesting, Dec 2008 TLT @ 120 = TBT 36, now TLT 98 = TBT 38.

 

[MohdSalleh]

safest investment now is to lend money to China. How can i lend money to the Chinese?

 

[Kassz007]

Quote from QuikrRetirement:

Safety of treasuries? If I were a buy and holder of these instruments, I think part of me would rather own Apple, Google and IBM corp bonds than Tbonds, especially in a large number of countries.

I agree. There are many more corp bonds I would rather own than government bonds.

 

[QuikrRetirement]

Quote from Kassz007:

I agree. There are many more corp bonds I would rather own than government bonds.

and also would add WalMart to the list. They may outlast the govts & bonds of most european countries.