Liquidity Fears Evaporate

There also are several smaller $250 million to $500 million deals in the market from utilities such as Wisconsin Power & Light and Public Service Co. of Colorado, among others.

"The real test of the currently restored health of the new issue market will come with the performance of deals in the secondary market," says Marrinan.

As of Wednesday afternoon, the Public Service Co. of Colorado's $350 million offering and Kraft's deal were trading up by 5 to 7 points from the original offering price. "Another good sign," says Sid Bakst, portfolio manager at Weiss, Peck & Greer.

Bakst, like Marrinan, is skeptical that the recent drying up of credit market liquidity -- driven in part by worries about the market for subprime mortgages, as illustrated by this summer's collapse of two Bear Stearns(BSC - Cramer's Take - Stockpickr) hedge funds -- is over.

He notes that liquidity has only partially returned in the secondary market for existing bonds -- even with the large deal calendar back in action. He also adds that he's wary of hedge funds' month-end portfolio evaluations that will come out Aug. 15.

Even Treasury Secretary Henry Paulson carefully weighed the uncertainties in the credit market with the strength of the global economy in an interview Wednesday on CNBC. It seemed Paulson was dually charged with indicating to the markets there's no rescue plan at play for credit markets in the U.S., while reassuring them that the economy really is strong.