Concern About Bond Defaults Signal Financials Not Out Of The Woods

[24/7 Wall St.]

<b>24/7 Wall St. Daily News</b>

The bets that companies will default on their debts is rising. Financials which own junk bonds or have financed junk deals will be on the hook. One S&P executive told Bloomberg ``The markets are pricing in a default rate of 9 or 10 percent for high-yield corporate debt, which is a lot higher than we're forecasting." The rating agency thinks the level of companies not making the note could be over 5% by early next year, so the market is guessing that S&P is wrong on the wrong side of things Credit agencies don't have much credibility left. They screwed...<div class="feedflare">
<a href="http://feeds.feedburner.com/~f/typepad/RyNm?a=sp3xcMG"><img src="http://feeds.feedburner.com/~f/typepad/RyNm?i=sp3xcMG" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/typepad/RyNm?a=N3EoU6G"><img src="http://feeds.feedburner.com/~f/typepad/RyNm?i=N3EoU6G" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/typepad/RyNm?a=YMksTXg"><img src="http://feeds.feedburner.com/~f/typepad/RyNm?i=YMksTXg" border="0"></img></a>
</div>

complete story here... (http://www.247wallst.com/2008/04/concern-about-b.html)