3. High Yield in 2010By Howard Simons
10:30 a.m. EST Brian, it's been a long time since we had a multi-year downturn in Treasuries, and that occurred during a very different macro environment than the present. During the Treasury bear market of March-October 1987, high-yield outperformed investment-grade, and stocks outperformed high-yield. Everything outperformed Treasuries. That changed rather abruptly during the October 1987 crash. But I think it may be a good model for 2010. No reference to the crash part is necessary now. It may be, unfortunately, if short-term interest rates rise abruptly, but I do not think that will happen.
4. Pilgrim's PrideBy Tim Melvin
12:23 p.m. I see that Pilgrims Pride ( PPC) has emerged from bankruptcy is the new shares are trading on the NYSE at 8 bucks and change this morning. The company went into bankruptcy in December of 2008 as a combination of high debt loads, rising chicken feed costs and a weak economy forced them to see the protection of the courts. In an usually strong restructuring performance all creditors have been paid and the stockholders walked out with shares in the new company. In the majority of bankruptcies creditors get a fraction of the debt and stockholders get zip.