august the 9th is in the books here in
Wall Street here's the New York minute
the hunt for yield continues we've had a
quiet day on u.s. stock markets but
elsewhere there's been a lot of action
both the Nikkei 225 and the german dax
index are at new highs for the year
having rallied more than twenty percent
from their lows but that's nothing
compared to what we've seen in bond
markets most spectacularly in the UK
where as you can see the long dated
guilt is one of these strongest
performing securities anywhere in the
world now when bond markets performing
like that it has an effect on us credit
if we take a look at the Moody's ba a
corporate yield this is the rate at
which the largest strongest US companies
can borrow it's near 60 year lows which
explains why so many of them are taking
the opportunity to reel Everage
similarly if we take a look at the
performance of the largest DTF holding
high yield or junk bonds it's at a new
high for the year when people are
worried about yield they start worrying
much less about risk and that's the New
York minute