WHY THE CARPET IS ABOUT TO BE PULLED FROM UNDER THE JUNK BOND MARKET — SOURCE: 07-03-18 ZeroHedge – “Why The Carpet Is About To Be Pulled From Under The Junk Bond Market” — Last week we noted that ever since the start of 2018, an odd divergence has emerged in credit markets, where Investment Grade bonds […]
JNK
HY FUNDS CONTINUE TO SEE RECORD OUTFLOWS
HY FUNDS CONTINUE TO SEE RECORD OUTFLOWS HY funds have continued to record outflows (34th consecutive week). Outflows have accelerated over the past week, as last week’s outflow has been the highest in 17 weeks. Looking into the domicile breakdown, European-focused funds have recorded the largest outflows. Outflows from US and globally-focused funds were also […]
CREDIT CYCLE WARNING: EMERGING MARKET SOVEREIGN BONDS CHEAPER THAN US HIGH YIELD!
CREDIT CYCLE WARNING: EMERGING MARKET SOVEREIGN BONDS CHEAPER THAN US HIGH YIELD! — SOURCE: 06-14-18 Forbes – “When Will The High-Yield Credit Bubble Burst?” — U.S. Federal Reserve Chairman Jerome Powell speaks during a news conference June 13, 2018 in Washington, DC. After a two-day meeting the Chairman Powell announced that the Fed will increase […]
HIGH YIELD SPREAD EXPECTATIONS HEADING INTO A RECESSION
HIGH YIELD SPREAD EXPECTATIONS HEADING INTO A RECESSION “HY spreads do not have a recessionary look at all” … but let’s see what happens when the QE stops buying corporate bonds. “The energy sector suggest there is some chance of a recession in 12 months, but not sooner.”
HY:IG RATIO AT LEVELS HEARKENING BACK TO RISK ERA OF OCTOBER 1997 & JUNE 2007
HY:IG RATIO AT LEVELS HEARKENING BACK TO RISK ERA OF OCTOBER 1997 & JUNE 2007 — EXCERPTED from: 06-07-18 ZeroHedge – “Does Deutsche Bank’s Junk Bond Firesale Mean The Party Is Over? “– Less than a month ago, Moody’s warned that “the prolonged environment of low growth and low interest rates has been a catalyst for striking changes in […]
DEUTSCHE BANK SEEKING TO SELL NON-INVESTMENT GRADE ENERGY LOAN PORTFOLIO WORTH ~ $3B
DEUTSCHE BANK SEEKING TO SELL NON-INVESTMENT GRADE ENERGY LOAN PORTFOLIO WORTH ~ $3B — EXCERPTED from: 06-07-18 ZeroHedge – “Does Deutsche Bank’s Junk Bond Firesale Mean The Party Is Over? “– Bloomberg reports Deutsche Bank is seeking to sell its portfolio of non-investment grade energy loans, worth about $3 billion, according to people with knowledge of the […]
JUNK BONDS AT RECORD NET LEVERAGE LEVELS AS INTEREST COVERAGE RATIO FALLS
JUNK BONDS AT RECORD NET LEVERAGE LEVELS AS INTEREST COVERAGE RATIO FALLS HY Leverage at record highs.. HY spreads returned to their January tights while their IG (Investment Grade) and EM (Emerging Markets) counterparts remain significantly wider…
JUNK BOND YIELDS AT LOWEST DECILE ON RECORD
HY Yields at their lowest decile on record… This occurrence signal traditionally confirms the early beginnings of the road to the Next Financial Crisis
HIGH YIELD BONDS SIGNALLING: “SELL THE RALLIES”
HIGH YIELD BONDS SIGNALLING: “SELL THE RALLIES” It appears that as soon as HYG reached its 100-day moving-average, that was good enough and sellers used the bounce to sell… And sell they did – the biggest outflow since the election in 2016… So what do they know?
BIGGEST INFLOWS OF THE YEAR DRAG JUNK BONDS FROM THE PRECIPICE!
BIGGEST INFLOWS OF THE YEAR DRAG JUNK BONDS FROM THE PRECIPICE! — SOURCE: 04-20-18 Bloomberg – “Junk Bonds Are Back in Black After Biggest Inflow This Year” — The rising tide in junk debt markets is lifting all boats — even ones that looked a little leaky just a few weeks ago. In the last […]