tag:blogger.com,1999:blog-30643134.post5281396008341056135..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Flight to Quality?Accrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-30643134.post-25829071646461396412007-02-28T08:21:00.000-05:002007-02-28T08:21:00.000-05:00I might have spoken too soon on the flight 2 quali...I might have spoken too soon on the flight 2 quality thing!<BR/><BR/>Anyway, I feel pretty confident that corporate bonds will come back. Nothing about the liquidity situation has changed.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-90459284551989226342007-02-27T14:46:00.000-05:002007-02-27T14:46:00.000-05:00Spreads right now are pricing in minute amounts of...Spreads right now are pricing in minute amounts of risk throughout the world. I think we're going to need a drastic re-assessment of the icebergs in the water before we have an LTCM-scale flight to quality going on.<BR/><BR/>It seems to me that everyone is betting that the liquidity sloshing around the system will right any wrongs.<BR/><BR/>Annual loss rates due to default in high yield bond markets are at about 30bps right now. I think people are more scared about missing the train than losing money.Apoliticalhttps://www.blogger.com/profile/16305786346100392027noreply@blogger.com