Corporate Bonds
June 11th, 2009 1:49 pm | by John Jansen |Corporate bonds are on fire as they have been for some time. Spreads are better by 5 basis points to 10 basis points.
One veteran salesman and friend of the blog notes that there are no sellers and only buyers. He offers that volume is lighter than one would expect because the street is not carrying much paper and that has made some paper very prices.
By way of example of the steaminess of the market he cited the McDonald 2018 bond which traded at T + 90 today. One month ago the bond was at 150 and two months ago around 20.
There is a 2035 Walmart which traded + 105 yesterday. That boond was T+ 200 a month ago.
The rally is relentless and marches on.
3 Responses to “Corporate Bonds”
By Griff on Jun 11, 2009 | Reply
Will be interesting to watch how corp spreads behave next month as earnings season kicks off. I don’t imagine earnings in the finance space are anything to write home about quite yet
By Bman on Jun 11, 2009 | Reply
Agreed – the bar has been pushed up a bit this time by the “green shoots”.