Sunday, November 22nd, 2009

Posts Tagged ‘ Fed’s balance sheet ’

Why Corporate Bonds Could Be The New ‘Safe Haven’ In 2009

Dec 29th, 2008 | By Eric Roseman | Category: Politics & Economics

Given the implicit government guarantees, Eric Roseman says it is likely that investors will soon start to switch from low-yielding Treasury bonds to high-grade corporate debt. The Fed’s balance sheet is now polluted by the toxic debt it has taken on from banks. And demand for Treasuries will not keep pace with the deluge of supply in the coming year. Eric says this could make investment grade corporate debt the new safe haven in bonds in 2009.