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Crude Contagion Spreads To Investment Grade Credit: Spreads Burst To 14-Month Wides
This morning's bounce in stocks off the overnight lows is being entirely ignored by credit markets. US HY Energy spreads just broke 1050bps - record highs, worst than during the 98 crisis. Broad HY spreads have surged wider to 18-month wides. But perhaps most worrisome, investment grade credit spreads are 'relatively' underperforming, bursting to 77.5bps - the widest in 14 months.
Equity bounce ignored by credit...
Broad HY markets are surging wider as managers seek any protection and HY energy breaks 1050bps...
But it is IG credit's surge that is most worrisome....
As contagion wreaks havoc.
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To whom the bell tolls?
<Pavlov's market dog's?>
Best reason to buy oil here? Jim Cranium says it goes below $52
Go for it.
I'll watch.
At this point all of us in the cheap seats are peeping Toms.
<Got milk voyeurism?>
Trade is working like a dream. You and kaiserhoff stand and watch those come line bets will yah
Let's see if this contagion gets to us before Ebola does.
Investment grade=shit GS is trying to sell....
You catch the knife first. I'll catch it after it hits the ground.
Is that strategy working with your gold?
CL trading a little crazy as of 11:00 am. Like a constant oil report. Big voulume coming in to several one dollar ramps. A falling knife or lawn mower blade.
It is going to be some funny stuff if the Fed continues their no QE free money for speculators tomorrow. Do they drink their own koolaid or not? We shall see.
no QE (for now)
supply/liquidity issues
once we're back in a recession (not long) and $trillion deficits back in vogue ... trout pond restocked
"once we're back in a recession"
You mean when the FED's asinine mouthpieces announce we are?
Depression of 2008 continues unabated.
It's only a depression if Krugman the great says it is....
It's the slow knife that cuts the deepest.
http://youtu.be/bhzXEKgZOkI
I thought you were going to go for the quote from Dune: The slow blade penetrates the shield.
Your memory is better than mine. Dune was a great movie and I watched it several times, but I completely forgot about that line.
+1000
Perhaps the ultimate good vs. evil work.
Watching the DOW: it went from down 55 pointst to green in TWO minutes in a vertical fashion.
Move along folks, this is a "free" market.
a gentle reminder to not even think about shorting this "market" ...ever
Breaking:
Lapland has declared insolvency following a currency collapse, elves are rioting outside of the central administration building.
NOoooooooooooooooooooooooooooooooooooooo
Put your hands up, or I'll blow your kneecap off!
The Treasury Market Welcomes One and All
not saying it won't fall (eventually) ... but it is the LAST domino
Obama's personal investment portfolio is reported to be about 50% in US stocks and 50% in USTs.
Take a hint. These are the approved asset classes.
Credits spreads widening? Don't worry, it's all contained. German and French goverment bonds still going up. Nothing to see here, what could possibly go wrong? Let's put some more money in my bond fund today as it's doing so well!
/sarc
Not hard to imagine the direction of EU stocks in 2015. ECB QE, well then, that is another scenario isn't it?
I guess we are witnessing the justification for further QE. Yellen will say if we don't rearrange the deck chairs on the U.S. Titanic then the whole Country will sink. FYI...we are boarding up the lower windows of the Fed buildings and shipping survival packs to our banker friends because everything is going swimmingly well.
Lol.
Yeah, I don't know about everyone else, but I consider gov. issuing survival packs to bankers a pretty glaring tell.
Those survival packs contain antiseptic wipes...."No sting" antiseptic wipes.
Even in a survival situation, these guys are total pussies. The packs probably also have an ergonomic neck pillow to help ease tensions as the world collapses around them.
Yellen should spend Christmas day somewhere very warm wrapped in tin foil and butter.
I say Vlad should go "scorched-earth" and tell the Saudi whores, you want to play this game, ok let's play it. We will sell our oil at an equivalent of $20 per baril, but payable in rubles only... corner the Asian market that way and give the Saudi whore and their Washington masters the finger.
Short-term pain. Long-term gain.
Still no recognition by ZH that Dennis Fademan (Gartman) is very bearish "of" crude, therefore, it is likely at a bottom.
Zero Hedge will only post this AFTER THE FACT where it has absolutely no trading benefit for its readers. Keeping to the tradition of helping people lose money.
We don't have time to mock the hapless Dennis Gartman right now. There are larger issues afoot.
First of all, it's currency, not money and secondly if people are losing it because of something they read on a website then it's their own damn fault for being stupid.
These are the first two sentences of the ZH disclaimer:
http://www.zerohedge.com/help/disclaimer
"Zero Hedge is a financial news and information site, not an investment advisor. Making investment decisions based on information published on Zero Hedge, or any internet site for that matter, is more than unwise, it is folly."
About a month ago I remember commenting on Gartman saying oil was going to $10/barrel because of fusion reactors being invented. If you believe fusion reactors are just around the corner short oil.
Although, Gartman is usually a contrarian indicator.
Jump right in then. While you're at it, buy some rubles and Russian stocks. Let us know how it goes.
Great post ID for a TROLL
So you get wifi in that Port-O-San on Broad Street? Good to know.......
japan 10yr yield ...
0.356%
Anyone have a notional amount outstanding on energy corporate debt?
$TBTF
CRB (commodity basket) sliced thru 2010 low
Not sure exactly how, but THEY are intervening like mad to try to stem this avalanche, folks.
Seeing the S&P completely erase the losses...oil only down a little...energy companies leading the way (lol)...REPSOL/Talisman deal...Russia interest rate raise...halting RUB FX trading. Seems like a total panic...pulling out all the stops awefully early unless there is more of a crisis going on than they want to admit to.
Take the word "unless" out of the last sentence of your comment. Insert a period after "early" and capitalize the 't' in the word "there" and you would be spot-on in your analysis.
The Fed trying to pump up the sense of financial "well being " by stimulating the stockmarket under these circumstances clearly shows the FED is just a one trick pony.
But even ponies take a dump at some point.
Looks like there might be some consequences to the all out 'paper assault' on Russia by driving oil prices lower.
Oilbola;oil touches everything, and once you get oil into something you can't get it out, without painful withdrawls....