A small story blipped accross the AP today about the possibility of Moody's downgrading approximately 680 billion dollars in corporate debt. I know that doesn't seem like a whole lot of money, what with dollar bills growing on trees lately. However, in normal terms, you could buy your own country with it. The credit markets are much more sensitive to credit risks than equity markets. Last September corporate bonds devalued a few days before the market sold off. In the last week, corporate bond etf's such as LQD have broken their uptrends and are currently pricing in some substantial potential risk. At this point, the markets really want to rally though so we will see what happens. Love or hate these volatile markets!
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