Junk Investors Mull Terrorism Strategy

Bruno, Joe Bel
March 2004
Investment Dealers' Digest;3/29/2004, Vol. 70 Issue 13, p12
Trade Publication
The repeated widening of corporate bond spreads and increased market volatility following terrorist acts like the Madrid bombings on March 11, Israel's assassination of Hamas leader Sheik Ahmed Yassin last week, are forcing investors to consider how further violence might affect portfolios over the long term. Investors ore also growing concerned that more violence might undermine the Wall Street recovery seen during the first quarter. High-yield bond prices fell about a quarter point overall last week, traders said. The travel industry was a key sector affected, especially the oirline sector. But the impact of terrorism on the high-yield market has also affected other, less obvious companies-such as luggage maker Samsonite Corp.


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