The news today…Countrywide’s drawdown on short-term credit facilities, I guess to cover for the fact nobody is buying loans. The funny headline…Countrywide Bonds Offer Juicy Yield for the Hearty. Hearty indeed.
Talking with a friend earlier about the risks of shorting the broad market, we agreed that if KKR (or anyone else for that matter) gets one deal out the door, the indexes could turn on a dime. Still, they said they weren’t buying any of this Countrywide paper. What’s their business? Buying high yield paper.
UPDATE: Yes, turn on a dime…on buyout speculation.
UPDATE2: B of A bought preferred stock with a juicy yield instead.