It was a busy day on the corporate side even as stocks closed relatively flat and Treasury bonds continued to give up ground.

There was chatter about an impending bankruptcy for photography giant Eastman Kodak as the company looked to access DIP (debtor in possession) financing.

Senior secured notes for Sears Holdings were downgraded two notches by rating agency Moody's as the retailer continues to suffer from performance issues.

A graduate school buddy reminded this player about a report that he co-authored eight years ago, presciently titled "Kmart & Sears: Wal-Mart Ate My Lunch. An over-valued turnaround store with limited potential for success."

For the adventurous, the full report can be read at the following link: https://analystreports.som.yale.edu/reports/sears.pdf

The primary bond new issue pipeline kicked into high gear with Yankee (foreign based issuers issuing in U.S. dollars) and U.S. corporations both tapping the markets.

GE stole the cake with a multi maturity bond offering: $2 billion 3 year, $1 billion 5 year, and $1 billion in 10 year bonds (the 10 year was a re-tap of an existing facility).

Ford, Kexim (Korea Export Import Bank), MetLife, Daimler, Vale, and the InterAmerican Development Bank all joined the bond party.

Interestingly, several of yesterday's Euro denominated covered bond transactions came from non-European financial issuers that probably would have preferred to issue in U.S. dollars but chose Euros instead because of the cheaper relative cost.

The big question on most players' minds is how long the January honeymoon in the markets will last.

There is a widespread feeling that things may worsen in the markets before they gradually (in the long term) get better, especially with regards to the European situation.

The Euro dipped back below 1.3 versus the U.S. dollar as if on cue.

Demand for oil remains strong with geopolitical noise around the Straits of Hormuz continuing.

On the political front, the Iowa Republican Presidential primary saw a somewhat inconclusive finale with Mitt Romney taking the lead by a thin margin.

With the November general elections still a long way away, it is a very difficult call to make on who will win.