Smoking Securities

Half Baked High Finance

Bernanke’s 0% Means Buy Junk

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LQD has been good to me, so why not move down the quality ladder for higher yield?

I’m kicking myself for being too lazy to post this chart last night. The large volume in high yield corporate debt suggests that risk sentiments are changing.
If you like high yield, here is a ton of rising junk you might be interested in.

Emerging market debt is making a 2nd Bollinger violation. I wish there was more volume in this issue.

Muni’s have found stability, and offer tax free yield.

Bonds are offering ridiculous yields whilst rising from panic induced bases. If inflation gets nasty, these will lag the market, but if you want to lock in yield, this collection looks promising. My trade in LQD has come to an end, but I think I’ll try an scoop up some of these lower credit quality plays if the tape presents itself.


Written by chucklesamadeus

December 19, 2008 at 12:19 am

Posted in HYG, JNK, PCY, TFI

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