I have returned as the medical doctor cancelled on me. I have gleaned some information from friends since I came back.
Monoline insurers remain the flavor du jour. Participants await more downgrades in that sector and do not believe that the market(s) currently reflect the magnitude and severity of what will ensue. Against that background, corporate bond spreads were a couple wider at the open. I have not checked in a bit but with the equity market flipping to the positive side of the street those spreads have probably move a bit tighter. Participants in that market still expect an onslaught of issuance as there is much balance sheet rehabilitation and repair which needs to occur to correct the market’s woes.
In other markets I have heard of a bid list of CMBS paper as well as some buying of New Zealand and Australian government bonds.