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Tag Archives: high-yield bonds
Too Safe to Fail: Implied Default Rate for European Junk Bond is Negative 1.1%
Too Safe to Fail: Implied Default Rate for European Junk Bond is Negative 1.1% Apparently, European junk bonds are too safe to fail. Fundstrat Global Advisors’ Thomas Lee says the market-implied default rate for a European junk bond sits at a negative 1.1%. Please consider Investors Price European Junk Debt as Too Safe to Fail, […]
Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008
Guess What Happened The Last Time Junk Bonds Started Crashing Like This? Hint: Think 2008 The extreme carnage that we are witnessing in the junk bond market right now is one of the clearest signals yet that a major U.S. stock market crash is imminent. For those that are not familiar with “junk bonds”, please […]
Junk Bonds Under Pressure
Junk Bonds Under Pressure While the Stock Market is Partying … There are seemingly always “good reasons” why troubles in a sector of the credit markets are supposed to be ignored – or so people are telling us, every single time. Readers may recall how the developing problems in the sub-prime sector of the mortgage […]
Junk-Bond Bubble Implodes Beyond Energy, Deals Scuttled, Yields Soar, Suddenly “Insufficient Demand”
Junk-Bond Bubble Implodes Beyond Energy, Deals Scuttled, Yields Soar, Suddenly “Insufficient Demand” The year 2015 has just started, and already there have been two junk-bond casualties: the first on Thursday, and the second one today. They weren’t energy companies. Energy companies don’t even try anymore. They’ve been locked out. Both deals had to be scuttled […]
Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds
Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds If you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer. As I write this, the price of U.S. oil is sitting at $45.76 […]
The Scariest Chart For America’s Shale Industry
The Scariest Chart For America’s Shale Industry Back in early November, when we posted “If WTI Drops To $60, It Will “Trigger A Broader HY Market Default Cycle“, it was greeted with the usual allegations of conspiracy theorism, tin-foil hattery and pretty much everything else, except rebutting facts. Two months later, it was none other […]
Junk Bonds Are Going To Tell Us Where The Stock Market Is Heading In 2015
Junk Bonds Are Going To Tell Us Where The Stock Market Is Heading In 2015. Do you want to know if the stock market is going to crash next year? Just keep an eye on junk bonds. Prior to the horrific collapse of stocks in 2008, high yield debt collapsed first. And as you will […]
Great Unwind of Oil-and-Gas Junk Bonds to Defund Fracking? | Wolf Street
Great Unwind of Oil-and-Gas Junk Bonds to Defund Fracking? | Wolf Street. The price of oil plunged once again off the chart on Monday and early Tuesday. At one point, West Texas Intermediate traded below $54 per barrel, though it soon bounced off. Crude is down nearly 50% since June. And over-indebted energy companies with cash flows that range […]
Today’s Market Contagion: Energy High-Yield Credit Spreads Blow Above 1000bps For First Time Ever | Zero Hedge
Today’s Market Contagion: Energy High-Yield Credit Spreads Blow Above 1000bps For First Time Ever | Zero Hedge. For the first time on record, HY Energy OAS has broken above 1000bps – signifying dramatic systemic business risk in that sector (despite a modest rebound today in crude prices). The energy sector is entirely frozen out of the […]
Who Will Suffer from a Leveraged Credit Shakeout? | Enterprising Investor
Who Will Suffer from a Leveraged Credit Shakeout? | Enterprising Investor. Of all the noteworthy moments from the 2014 CFA Institute Fixed-Income Management Conference, the bombshell may have been the default call from Martin S. Fridson, CFA. Fridson, CIO at Lehmann Livian Fridson Advisors, has been a leading figure in the high-yield bond market since it […]
