I was in the other room and overheard a reporter say something like this on CNBC. That may not be the exact quote, but I think it's correct. Does "US fixed income security" mean treasuries only? Or does that include other bonds like munis?
what were they talking about? anyone? jimbo?
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no doesnt just mean treasuries, and besides treasury yields are lower now than in 07
yeah, that's what i thought, but what could they have been talking about? aren't there plenty of fixed income securities out there with a higher yield today than a year ago?
yes clearly since the inverse relationship holds price goes down yield goes up and everything has generally gone down in the past yr (price wise(
"yes clearly since the inverse relationship holds price goes down yield goes up and everything has generally gone down in the past yr (price wise("
rethink this. yields are LOWER in 08 b/c prices are HIGHER.
i'm sure lots of distressed sht is more distressed so there are places to get higher yields. maybe on muni's too.
I've seen a 1 month WaMu Bank level floater go for L+3000 range. 1 years in the L+1300 range. Much higher yields than last year.
But for most invesment grade companies, issuing new bonds at the higher spreads is pretty similar to before the credit crunch due to the lower treasury rates. I think that's what CNBC is trying to allude to, but as many have pointed out here, the media does make mistakes.
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