Geeze, Zerohedge is one of the best blogs. Check this out, evidently Senator Max Bacchus has snuck some legislation into the stimulus bill that juices corporate tax benefits for buying back and retiring their distressed debt.

Zerohedge’s author speculates that its going to be great for the bond market for two reasons. First, corporations that buy back their debt will show strengthened balance sheets. Second, bond trading companies will have incentive to pre-purchase bonds of companies that may do buybacks.

Either way you cut it, this is good news for corporate profits. We can use more of that.

Click here for the posting.

Best,

James

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