Corp. Bonds and Rating Agencies

Please read this story in WSJ about Corp. Bonds, titled Corporate Debt Looms as Next Bank Debacle.........

This one talks about issues pertainign to corp debt, without going into detail, who is holding which bonds and by how much............In other words when it comes to details, none of the Banks want to provide any kind of information. That is the reason why the market is to jittery.

Also, one more thing....

This is about rating agencies (RA) and AAA rating on ABK and MBI. Given the amount of discussion on these topics on various forums. Does anyone believe at this point, what RAs do Vis-a-vis Ambac and MBI. It is pretty clear atleast the market does not think the rating of ABK and MBI matter much. Or else, the auctions of Municipal Bonds would not have failed.

Please keep a close eye on this issue for next week.

Thanks for reading........