Europe News

Pros Say: Bypass Treasurys, Buy Corporate Bonds

CNBC.com
WATCH LIVE

Global stocks were lower Wednesday as investors were disappointed by the lack of clarity in new US Treasury Secretary Timothy Geithner's financial rescue plan. Experts tell CNBC that during the economic slowdown and market uncertainty, the bond market is the place to invest.

Buying Up Corporate Bonds

The current 10-year yields of Treasurys does not look attractive to Giles Keating, global head of research at Credit Suisse. He prefers corporate bonds with a tenure of about 3-4 years.

US Government Must Act Fast

The US risks wasting billions of taxpayers' money, if the government fails to act fast to resolve its banking problems, says Kenneth Rogoff, professor of public policy and economics at Harvard University. Partial nationalization of insolvent banks could be part of the solution, he suggests.

US Yet to Come to Terms with Scale of Bank Problems

Kenneth Rogoff, professor of public policy and economics at Harvard University, says many major US banks are insolvent and have to be put through receivership.

Investors Seek Clarity on US Bailout Plans

Investors needs more clarity on the valuations of the bailout package, says Rhonda Staskow, senior currency analyst at Action Economics.

Private Money Wants to Invest in Banks

Putting a floor on toxic assets will give clarity to the health of US banks and attract private capital to help them rebuild, says Peter Hoflich, associate editor with The Asian Banker.

Toxic Assets Still Looming

Trying to get a grasp on the banks' toxic assets is fundamental to a recovery in the sector, Mark Spelman from Growth and Strategy Accenture told CNBC Wednesday.

More on the US Bank Rescue Plan: