How soon do we forget. It was at 6.50 in June 2000. Now it is at 5.25 and everyone is crying faul? No crying until rates hit 10%
These increasing rates are bad news for the HB's. Just when some were hoping for a prescription of Whirlybird Bennies to cure the HB woes, the rug is pulled out from under them.I may be reaching here(?), but I think this could be the start of a downturn for the market and shorts or puts on the HB's looks like one of the better ways to play it. Institutions have to be getting worried and I would expect they will be starting to shy away from the HB's pretty soon.