6/2/10

Not good

News. No companies issued bonds in the U.S. yesterday, compared with $2.2 billion on the corresponding day following the Memorial Day weekend in 2009, according to data compiled by Bloomberg. In Europe, 1.35 billion euros ($1.66 billion) was raised from two sales of covered bonds, versus 6.5 billion euros a year earlier, Bloomberg data show

Wall Street banks are pulling back from providing capital that helps clients trade, making it harder for Loomis Sayles & Co. to purchase the corporate bonds that the $145 billion investment firm seeks.


My point. If corporations do not issue bonds and banks are not lending...well...the system is frozen. And this is not good for the markets and the economy.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

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1 comment:

Arif Hooda said...

Hay George,

-US Dollar Index index growth is peaking

-MZM appears to be growing back from negative

-CRB index is going into negative growth

-SP500 growth is bottoming out and risk of going into negative growth

-10yr and 3yr treasurey spread is going into negative growth

-Coincident index is growing (April)

-Lagging index is growing (April)

-Leading index growth slowing down

All above data is based on 6 month change

Let us know what do you think?

Thanks,