- there is an Eoc saying … there will be a surge of single -a rated issues coming to the market…resulting in widening of spreads… I thought when issuance is high spreads thighten? (supply will hurt spreads… but only the secondary market?) 2) if managers can not purchase certain bonds in a sector… is there automatically a risk premium with it? thanks
- there is an Eoc saying … there will be a surge of single -a rated issues coming to the market…resulting in widening of spreads… I thought when issuance is high spreads thighten? (supply will hurt spreads… but only the secondary market?) there was a post by elcfa a couple of days ago… It is relative to AAA bonds, or sth. like that. bcos of which the spreads would “thighten” (man … you are getting really charged up).
sorry i dont understand your answer?!
I was just joking about thighten instead of tighten… (sorry). Read the post from elcfa a couple of days ago about this question… (It related to tightening spreads with relation to AAA bonds, or sth. like that).
in this question the widening of spreads the question is referring to is not a widening of the spreads between the Tbonds and the A bonds. It is referring to a widening of spreads between the A bonds and the BBB bonds.
yellayella Wrote: ------------------------------------------------------- > sorry i dont understand your answer?! Here is what CPK is referring to: http://www.analystforum.com/phorums/read.php?13,1251230
ok thanks, got it 
what about the if managers can not purchase certain bonds in a sector… is there automatically a risk premium with it (Q.20) Whats the logic behind this? If lets say european pension fund is restricted in buying foreign shares, do the bonds automatically trade at a premium???