Many economists are proclaiming the recessions end from a variety of measurements in manufacturing, consumer and investor confidence and leading economic indicators. Housing and commercial real estate markets and consumer spending and employment continue to trend lower but appear to be stabilizing. The financial services sector shows an increased willingness to lend money but the Federal Government represents an inordinate share of mortgage origination. The mixed nature of economic releases comes within a back-drop of increasing GDP from the huge draw-down of inventories related to retail liquidation and the cash for clunkers that will result in much higher levels of GDP growth through the end of the year. Couple all of this with the Obama stimulus package picking up steam going into and through 2010 and the prospects for the economy appears to be brightening.

Conclusion: Credit and economic risks are declining because of the aforementioned. Whereas, interest rate and overall inflation risks are also favorable due to a Fed. that will undoubtably remain on the sideline because of high unemployment and low industrial capacity utilization and this bodes well for high yield and investment grade corporate bonds, ETF's like PCN and PTY, particularly as fund flows favor fixed income investments as evidence to mutual fund flows into bond funds and the very successful Treasury refundings that have taken place.