The Healing of the Credit Market


The credit market seems to be alive and well again as sales in the bond market continue to rise. In the first half of this year, record amounts of debt have been sold in both the U.S. and in Europe. Even year-to-date, at the nine month mark of 2009, the credit market seems to be on the mend.

With more than a trillion dollars in bonds having been issued in the U.S. and more than two trillion dollars in bonds having been issued in Europe, it seems that bond issuers are moving from a reliance on bank debt to pushing money back into the capital markets.

Investors have shown up all year for a variety of bond offerings, which illustrates there is a great deal of interest on both the supply and the demand sides for the bond issues of the future.

Some corporate bond traders have described the activity in the bond market as being “on fire.” No matter adjective or term used to describe what’s happening in the bond market, it’s a positive sign for the credit market as a whole. A healing credit market may just send an elated sigh across the country (and possibly even the world).

Those doing the best in this market are the folks who’ve been using their homes to pay for their homes. Yes. Using the equity in their home to pay off their mortgage principal. The result? They can buy more real estate, always a good investment when entered into correctly. Watch a video presentation of how to pay off your home years sooner

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