This page has been archived and commenting is disabled.
High-Yield Credit Crash Accelerates
High-yield energy bond spreads are crashing-er. Up 15bps to 880bps today, these are record wides and massively impact the economics of these firms - no matter how much investors want to ignore it. This is contagiously spreading across the broad high yield and even investment grade credit markets as high yield bond prices crash below the mid-October Bullard lows...
HY Energy risk is exploding...
And that is contagiously infecting the entire credit complex...
Now we will see what BlackRock's liquidty fears really amount to.
Charts: Bloomberg
»
- 11109 reads
- Printer-friendly version
- Send to friend
- advertisements -
So "markets" are going to be allowed to function now? I don't think so. Get in there and buy Kevin buy!
bargain hunters
Falling knives.
forks. spoons.
https://www.youtube.com/watch?v=tOW5eljyjms
This is only a drill...I repeat, this is only a drill
BREAKING: PUGSLEY DEAD OF HEART ATTACK @ 59.
link Por Favor...
MSN Homepage.
http://www.msn.com/en-us/tv/news/Ken-Weatherwax-Pugsley-on-The-Addams-Family-Dies-at-59/ar-BBgvD28?ocid=ansVariety11
I hate Kevin. He is such a douche.
the fat cow needs to push away from her 2nd buffet of the morning to reassure investors the fed will continue to rape and pillage the bottom 99%, via money printing, when the time is "right". ie, when the peasants dump after losing 40% of their "money".
Still not low enough. I used to buy JNK for 36-37 or I didn't buy it (38.69 now). And the dividend was a lot higher than it is now.
Knives falling everywhere.
Don't try to catch 'em.
That's the fed's job.
The Fed will do it when there is blood flowing everywhere in the streets. Until then, kiss your money good bye muppets!!
Crude can not catch a break....looks to be heading lower again today.
the 10-yr is still at 2.2. it was a 1.6 two years ago. bonds have a long way to fall.
http://www.marketwatch.com/story/abercrombie-ceo-mike-jeffries-to-retire...
That make two ship jumpers today
They took the Abercrombie and Fitch brand and milked it by turning it into a teen fashion chain.
Good luck reversing that...
"Abercrombie & Fitch"
Talk about it's products being way overpriced.
Hard to believe how far A&F moved from its original hunting/safari roots. That NYC store was amazing.
Nice to see that gold and silver are responding to this. Clearly there is some pulse left in the real world.
It starts looking attractive when the other bullshit collateral is no longer accepted.
$1232 smells like a short sqeeze, not a flight to safety.
"V" shape recovery in indices has already begun -
Yep. Dow green by 2:00pm ET.
yep. if i had any balls i would btfd right now.
This is going down a few more percent today. It will set up a santa claus.....
funny seeing treasury yields track hy prices, lulz on that
Ode To A Small Lump Of Green Putty I Found In My Armpit One Midsummer Morning [/Grunthos the Flatulent]
I would have never taken you for a Adams fan.
Treasuries simply lag. Treasuries drop because of flight to safety. Same reason PM's are up.
I know I like to trash PM's, but maybe I'm changing my mind.
Back to bonds, let's just take a mythical, hypothetical, this-could-never-happen-in-real-life scenario. Let's just say, in some parallel universe, that crude prices fell, and risky, expensive to get oil production funded by risky, high yield (junk) bonds, sold by the genetic descendants of Michael Milken and his ilk-en, start to look risky-er. Let's say in this impossible scenario that simultaneous events in other parts of the world make their (Chinese) and (Greek) bonds look risky too, and bond prices start falling in several places at once, sort of like a simultaneous spontaneous combustion process in a vast empty warehouse full of greasy rags.
In this dark fantasy (which could never happen here, on this planet), how long will it take before a junk bond contagion spreads to... well, is there such a thing as a real, honest to god, triple A bond? Aren't they ALL junk bonds? So, what are the vector paths of the contagion? How does HY-ebola spread to the greater bond market? Are HY and other bonds connected by derivative trades, or by some sort of carry? I am not a trader, so I don't know the answer, but common sense tells me that if HY goes south, then the rest of the bond market is tied to that engine block by some kind of rope.
WHAT IS THE ROPE MADE OF? I humbly await an answer.
But, also in the spirit of humility, it looks like gold is going to the moon. Good on ya, stackers, it looks like I am to be proved wrong by your faithfulness.
#9 out
I love CURRY TRAY.
So that big dummy credit market (like me a big dummy) says Crude will be 40ish and below for potentially quite some time but, but, but the financial media keeps saying how great everything is.
Let's cut to the chase: what position does Gartman have on Crude currently? I'm such a dummy I need some help from Gartman and Cramer.
Shale boom go bye-bye !