fw market update color debt markets original message scott david c mailto david c scott bankofamerica com sent friday september 21 2001 7 53 subject market update market update market opened weak tone morning given collapse equity futures dow futures 408 p 29 nasdaq 40 collapse recent new issues secondary market ibm printed 1 5 bn five year yesterday 117 traded 130 leading collapse spreads bas several observations absolute level treasury yields continue result new issue supply priced ever widening new issue premiums issuers coupon sensitive spread sensitive result willing pay large new issue concession given attractive level overall coupons although seen yet corporate bond market inverted credit curve question given steepness treasury curve two three year securities particular almost need priced coupon basis technicals market beginning deteriorate insurance companies traditionally largest buyer long assets appetite new product may begin fade claim estimates climb balanced funds may need begin selling rebalance portfolios given meltdown equity market dealer community buyside trying hold market gains year despite negative tone bas feels issuers energy sector continue access primary market near term albeit wider spreads due defensive nature sector absolute implosion sectors autos media lodging retail airlines etc please hesitate call questions state current marketplace david scott banc america securities llc energy debt capital markets p 704 388 8853 f 704 388 9212 email david c scott bankofamerica com