“75….No Bids!”

by Matt McCleery

Whether or not you choose to believe the rumours out of Hong Kong that Lehman Brothers is on the verge of collapse or that Merrill Lynch is so exposed in Brazil that investors that have cash with the institution are calling to make sure it is federally insured, the fact is that the much of the US bond markets look pretty grim. Even the steady hand of good leadership is absent with the President of the most powerful nation in the world fighting for his own political life.

So you can blame it on Monica Lewinski’s dress or you can blame it on Russia, Asia or Latin America, but the one thing on which you can’t blame the bloodbath that is going on in the shipping high yield bond market is profit taking. Here’s an all too familiar scenario:

This is only an excerpt of “75….No Bids!”

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