1. Most Discussed
  2. Gainers & Losers
EMP 0.4¢

Treasuries in Demand, Safety Put First. Ford Bonds

  1. tophat

    1,256 Posts.

    Full report at http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20021009&ID=1986774

    European bourses were also under pressure with confidence in the entire German banking system so shaken that several top officials felt the need to try and calm the markets, to little apparent effect. And the woes are not confined to Germany.

    ``It smells like a financial crisis brewing for the capitalist world,'' said a trader at a U.S. primary dealer.

    ``Bank shares are collapsing, corporate spreads are widening, default swaps have blown out, Treasury yields are at ridiculous lows and volatility at historic highs. The signs are there if you have the stomach to see them,'' he warned.

    He had been particularly alarmed by a plunge in Ford (F) bonds which saw their spread over Treasuries widen by almost 3 full percentage points on Tuesday.

    ``Everybody, but everybody, has some Ford paper on their books. This is not good, not good at all,'' he said.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.