The answer is: because rising yields on credit instruments have begun to put downward
pressure on equity prices.
Not exact matches
HOUSTON, Feb 5 - Oil
prices settled lower
on Monday as rising U.S. output, a weaker physical market and recent dollar strength added to the
pressure from a widespread decline across
equities and commodities markets.
Benchmark spot gold
prices were
on course for an over 1 percent decline this week,
pressured by a thaw in tensions
on the Korean peninsula and a stronger dollar as investors looked to riskier assets such as
equities.
On the other hand, one might expect that because the CVR made up such a minor portion of the takeover purchase
price ($ 74 in cash plus one CVR per Genzyme share) and the CVR is a complex security not appropriate for most
equity funds, there would be selling
pressure until the end of the current quarter.
Many portfolios and assets are in dire need of
equity to recapitalize, creating
pressure on the part of owners to sell, likely at distressed
pricing.
The negative influences of war and terrorism remain: upward
pressure on oil
prices, declining affordability of terrorism insurance, and a wobbly
equity and bond market.
That is, large numbers of homes with negative
equity reduce the number of homes that go up for sale and that puts upward
pressure on home
prices.