Just Another Junk Bond Chart To Ignore On A Slow Wednesday…

…just something else you can probably ignore if you’re in junk bonds.

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Chart Check: Spot The Odd One Out

We’re going to pound the table, beat dead horses, shout from the rooftops, the whole nine yards on this, because what you saw over the last two weeks in HY is a mere drop in the bucket compared to what the outflows are going to look like when spreads start to blow out in earnest……

One Chart & One Question For High Yield Longs

If you’re still hanging onto high yield after the third largest weekly exodus in history (which was of course catalyzed by last week’s 10% plunge in crude prices), we would gently ask that you have a look at the following chart. It would certainly appear as though there simply is nowhere else for this rally…

“Junk-pocalypse Now”

Suddenly, everyone is talking about the HY canary in the stretched market coal mine. As if it hasn’t been readily apparent for at least three months that the rally off last February’s deflationary doldrums wasn’t absurdly overdone. And as if the relative spread compression (i.e. HY versus IG) that’s been unfolding for some four months…

“Canaries”

“A sign that the market is accepting that rates are indeed going higher? That issuance is finally taking more to digest? Or just another correction that looks mild if you’ve ridden this thing for the last year? My hint: it may not matter as funds were marked-to-market at year-end.”