When will rising US bond yields become a problem for equities and risk assets more generally? That’s one of the key questions right now, and
Category: credit
Many Marvels: The Year In Corporate Credit
One the many marvels of 2020 was the US corporate bond market, where borrowers were able to access cheap money in record amounts despite (or
‘Return-Free Risk’
In a world where some $18 trillion in debt “boasts” a negative yield, bonds no longer offer risk-free return, but rather “return-free risk.” So says
‘Morphing Into A Structural Shift’
For all the celebration (and simultaneous derision) around the Fed’s success in helping to drive corporate borrowing costs to record lows, credit is still wide
‘Frankenbull’ And Corporate America’s Multi-Trillion Dollar Bonanza
Forget the “everything rally.” That’s not nearly colorful enough as a description of 2020’s various market milestones. Instead, BofA’s Michael Hartnett calls it a “Frankenbull.”
What Risk? None In Junk, Apparently
Well, junk bond yields are at new record lows, which would be surprising if all you were going by was common sense. After all, 2020
You Can Add Record-Low Investment Grade Corporate Bond Yields To November’s Milestones
November scarcely needed another market milestone, having offered up a veritable cornucopia already, but I’ll toss another one out there anyway. After a truly dramatic
The $17 Trillion Reason Not To Panic About Corporate Bonds
You might be inclined to think market participants are suddenly nervous about the outlook for credit. After all, Steve Mnuchin is engaged in something of
Investors Just Rushed Back Into Junk
Earlier this week, US junk bond yields hit all-time lows amid the rampant euphoria that accompanied Pfizer’s coronavirus vaccine news. It was a remarkable achievement:
Meanwhile, More Milestones In Junk
Since April, one of the most astounding dynamics to observe was the dramatic abatement of credit risk or, perhaps more aptly, the market’s pricing of
Markets Showed Blue Sweep Bias Into Vote Count As Trump Predicted ‘Victory’
Markets generally retained what felt like a “blue sweep” bias across the Election Day cash session stateside, as equities surged and bonds fell with just
Meanwhile, In Junk Exodus News…
The following short bit will come as no surprise to regular readers, and as such, I hesitated to give it separate treatment. But, I decided
Stocks’ Worst Week Since March Spills Over Into Junk
The same risk aversion that sent US stocks tumbling towards their worst weekly performance since the March meltdown spelled trouble for junk bonds. At least
Back To The Twilight Zone: Companies Get Paid To Borrow During Pandemic
Nothing gets the crowd going quite like negative rates. “Perversion” is a term that invariably gets bandied about whenever this or that person endeavors to
This Is No Lehman. Meet Me At Dave & Buster’s!
There’s talk of “lockdowns 2.0,” which I suppose is market parlance for politicians’ latest efforts to craft a response to rising virus caseloads that doesn’t
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