Amnesia  

Oleh:

Condon, Bernard

Jenis: Article from Bulletin/Magazine
Dalam koleksi: Forbes Asia vol. 5 no. 17 (Nov. 2009), page 16-18.
Topik: Money; Financial Markets; Stock Market; Bankruptcy; Business; Bond Fund

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: FF5.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

A surfeit of money has led to loony prices in the financial markets. Sound familiar? On a wet, blustery Saturday night in Manhattan in mid-October, perfect for a movie at home, Blockbuster ought to have been enjoying one of its better nights. But only four people were riffling through the shelves at the 56th Street store--and it would have been three if Mohamad Belkir had his druthers. The 47-year-old says he would be renting from Netflix instead but for the fact that DVDs don't fit into the mailboxes in his building. For now. He plans to move soon to a nicer place where the mailbox won't be a problem. Blockbuster is approximately where buggy whip manufacturers were a century ago. So why are investors lapping up its bonds? Despite plunging same-store sales and liquidity troubles this summer that stoked rumors of bankruptcy, demand for its B-rated 11.75% bonds due in 2014 was so great on Sept. 17 that it was able to sell $675 million, nearly double what it had planned. Why? Forget the business and follow the money, specifically the net $20 billion that has flowed into junk bond funds this year. Suddenly flush, bond managers are scrambling to find somewhere, anywhere, to put their money to work.

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