Corporate Bond Market
August 25th, 2008 1:22 pm | by John Jansen |The cash market for corporate bonds is virtually closed. There is nothing in the way of new issues and cash market trading is not even sporadic. One seasoned salesman said that conditions feel as bad as they have anytime in the last six months. Thinking that he might be a good friend prone to a bit of hyperbole, I checked with a portfolio manager who concurred with that judgement.
The IG 10 has returned to levels at which it closed Thursday (146/147) before the Lehman-is bought-by -South-Korea- story propagated itself like ragweed.
CDS on financial names leak wider and they are between 10 basis points and 15 basis points wider on the day.
