MarketWatch: Casinos, media join autos on way to bankruptcy

Casinos, media join autos on way to bankruptcy
Bonds selling for dimes on the dollar show investors are expecting the worst

By Deborah Levine, MarketWatch


NEW YORK (MarketWatch) -- The bond market is doing the equivalent of a death watch on several well-known companies, signaling the U.S. economy could be in for more pain as struggling firms renege on loan payments and possibly file for bankruptcy.

Bonds of General Motors Corp. and auto supplier Visteon Corp.; retailer Michaels Stores and theme-park operator Six Flags Inc.; media firm Univision; and leveraged buyouts Rite Aid Corp. and Station Casinos all are trading for under 25 cents on the dollar.

That means bond holders anticipate these companies may not be able to keep up payments on their debt. Investors are only willing to hold the bonds at a deep discount to face value of 100 cents of the dollar.

"A lot of companies trading below a certain level are the walking wounded," said Kingman Penniman, president of junk bond specialist KDP Investment Advisors. "We're really concerned about defaults."
More corporate defaults and bankruptcies would spell bad news for the U.S. economy by potentially exacerbating job cuts, especially if companies close their doors, and by contributing to more losses at financial institutions that hold the debt. ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/Casinos-media-join-autos-risk/story.aspx?guid=%7B5D839E29%2DC9F8%2D448B%2D931C%2D114DE07A01F8%7D

I just accidentaly called my auto insurer cause I got this random credit in the mail which I didn't understand. I was mad. They lowered my rates on the basis that I was pissed off. What other year can we point to that they lower rates based on you being pissed off.

.

And got my annual fee refunded on a credit card that I really don't care if I even have it.

Anger is power this year, I guess.