Monday, October 27, 2008

The Hour of Dour: 3-4 p.m.

1 comment:

nice said...


I was listening to a credit fund manager today...

He said that the credit market is currently discounting that 90% of high yield bonds will default

He went on to say that such a rate of default was not even achieved during the 1930's depression

At such levels by historical norms, this would equate to a DOW of no more than 5000

So either the credit market is right or the equity market is right and the credit market is overreacting.