Biotech Values

[zipjet]

NFI is a good example of how financial leverage can take a company down. It was over 100 and now a bankruptcy is likely.

Take a look at FNM, FRE, CFC or WM. Each have enormous financial leverage. Each is dropping fast. Each could easily go bankrupt if the Fed is not accommodative.

Now I still expect the Fed to come to the rescue but they need to act fast. Here are some other symptoms of the problem:

- Rising Libor
- Fed repos $47B highest since 9/11
- CP continues to decline - think this is the 14th consecutive week
- the treasury YC (except 30 yr) is under the FFR

zip