Skip to main content

The Globe and Mail

Profits? This is about survival

As the equity rally faded on Tuesday - the Dow Jones industrial average was down 0.6 per cent in mid-afternoon trading - the voice behind the Accrued Interest blog said that the rally in the credit market should hold up.

"This makes total sense to me, as the government's manoeuvres mean more in terms of survival than thriving profit growth," the anonymous blogger said earlier in the day.

Accrued Interest pointed out that the iShares Corporate Bond ETF (LQD/New York) rallied 5 per cent on Monday, after investors grew more confident that the U.S. government's rescue attempt would translate into less fear over the number of defaults on corporate bonds.

Story continues below advertisement

However, the LQD trading on Tuesday afternoon hardly showed that investors were celebrating corporate bonds in any substantial way. Yes, the ETF was above water, but only by 5 cents, to $86.24 (U.S.).

Report an error Licensing Options
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Globe Newsletters

Get a summary of news of the day

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.