$7000bn debt due by 2012

• banks reluctant to lend: corporate bond market has new importance
• speculation for more M&A activity (cadbury and Axa Asia-Pacific) is bad for bond market. When Kraft issued it's takeover bid: stock down 6%, but CDS up 35% (!!)
• This week's G20 meeting: stimulus programs will remain until economic recovery is entrenched
• Dollar: 15-month low on trade-weighted basis
• Banks looking to refinance $7000bn of short-term debt expiring in the next 3 years. Will have to pay up as interest rates will most likely rise in the coming years
• average debt maturity in the US sank to 3.2 years in 2009, less than half the long-term average. CDS spreads lower for the next 3 years, jump 30% at 3-5 year range
• short term debt was exasperated by governments guaranteeing the new loans during the crisis