June 3, 2009

>Pimco in our meeting today talked about burden sharing and how as a policy it has caused uncertainty in the credit markets with the changed prioritization that the automotive bailout now has established. A new systematic risk that the government can come in and change debt holders prioritization retroactively they feel now changes the landscape for the municipal and corporate market for whenever the political winds blow. They now view systematic risk has taken on a whole new meaning. They are very worried as to California’s pending issues and more corporate debt that still may face challenging future repayment problems.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: