September 30th, 2008 2:19 pm | by John Jansen |

There is very little trading in secondary corporate bond market. Spreads are at record wides but that has not attracted a bevy of buyers. One salesman with whom I converse noted that he did have some clients poking around with distress level bids on Target 5 year paper.He also observed interest in food names such as Kellogg, Kraft and General Mills.

The IG 10 has rocketed along with the stock market and is in the low 170s after closing yesterday in the low 180s.

I have a fetish for the American Express 5 year note. It priced in August at a spread of 4 3/8 percent above the 5 year Treasury note. The issue priced 100 basis points cheap to comparable Amex paper. The issue had edged tighter to about 370 basis points prior to this latest round of spread widening.

With the turmoil in the markets, that issue has cratered and is now 510 / 490.

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