Spreads are slightly better this morning but I don't think we'll see any large moves either way ahead of the TARP II announcement and/or payrolls on Friday. A declining Vix strengthens my thesis as well.
The new issue supply in investment grade credit is keeping a torrid pace. Yesterday saw $7.4B in non FDIC guaranteed debt alone. Novartis, P&G and Altria were the headliners. You can see details on Bloomberg by typing NIM3
While the investment grade market plugs along just fine, the high yield market is headed the other way...much weaker. Defaults during January were the highest on record at $25.2B. In addition, there are another $23.2B worth of bonds in their 30 day grace period (payments were not made but they have 30 days before it's an official default). Those are staggering numbers.
For those of you under 40 years old, Google Latitude is probably old news. They continue to churn out interesting, simple and useful apps.
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