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High Yield Bond ETFs Tumble To Friday's Lows, Break Below Lehman-Aftermath Lows
High yield bond ETFs are down for the 8th day in the last 9, retracing the modest bounce from Friday afternoon, plunging to new multi-year lows. In fact, at current levels HYG is trading below the lows it hit in the immediate aftermath of the Lehman collapse (Sept 2008).
Bounce or Break?
HYG (the High Yield Bond ETF) is trading below the lows hit right after Lehman imploded... (9/17/08 lows were $79.25)
Is it over yet? You decide...
As Credit Suisse noted,
There is a theme at present that credit is leading other markets, and is predicting "recession." We are worried...
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This is what granny gets for chasing yield.
I've always enjoyed listening to investors in "safe" bond funds freak out during rate hikes.
There will be a lot of surprised retired folks finding out that Hymie Finkelstien stuffed a shit load of their money in junk bonds. Same story as MBS, nothing changes.
No Ben Bernanke to save you this time.
Come down to daddy muhahaha! (short)
Lower highs, lower lows...break.
its icahns fault <---blaming the messinger lol
Yeah, ya gotta hand it to him for speaking "truth to power" right when it started to snap...lol...course, he coulda jumped on CNBC and told Granny the bad nuuuz like six months ago when it would have made a difference.
Now he'll be praised by them for "making the call"...gawd this shit is sick.
Hope the buy-and-hold yield chasers enjoyed the roundtrip ... thanks for playing, bitchez !
What is truly frightening is that the move to these levels in HYG (and Oil etc.) has been a slow grind compared to the "apocalypse / end-times" moves seen in 2008. Also the investor attitudes seem very complacent. So it feels like this will just keep going in the absence of a real "spike" in levels (and VIX too).
Welcome to the future of commodities. But dont worry, the stocks overall will keep making new highs next year.
<<<Biggest shit eating grin "since Lehman."
As we recall somone is in line to make a killing
15,000 January 2016, 80-strike puts on the HYG high yield bond ETF
http://www.ottawabullion.com/kranzler-someone-just-put-a-1-6-million-cas...
but that pension fund can say they are going to make 70% next quarter at these prices...double down baby
That is exactly the kind of advice every loan shark, every boiler room broker, and every politician is shouting right now.
stay out of energy and you should be fine. Deep pockets with little leverage are stocking up right now. The search for yield will not end.
The Fed can rig prices (which they did), but they can't rig value.
The stuff that was garbage before (when debt levels were too high, but lower than now), is still garbage. But now that the garbage has been levered up with more debt (thanks Bernanke!)... its still garbage.
Kicking the can down the road didn't solve anything. Too much debt cannot be fixed with even more debt.
When a central banker promises a free lunch, its a lie.
My girlfriend came home with a Metlife packet, saying that after speaking to HR and her Mom, she wanted to start making "her money work for her." She was set to do 401k, with matching, until I flipped open the fine print booklet.
Her options were Blackrock managed high yeild bonds and 'growth' funds for equities/ETFs. These are the liquidity providers.