And if nothing has done to convince bondholders that extra 4.3% of GDP tax increase dedicated to compensating them fordefault risk is coming, next year what will be needed will be not 4.3% of GDP but 8.6% of GDP.
On September 13, 2011, the IRS released Notice 2011-76, which gives executors of estates of 2010 decedents more time to make an informed decision about whether to stay in the default estate tax regime for 2010 or opt out of the estate tax entirely.
Cohanzick believes that high yield spreads are currently priced to produce 170% greater after-tax yields versus 10 year TSYs after adjusting for future default losses and taxes.