Category Archives: High Yield Debt
UBS Explains Why The Next Credit Unwind Will Be Unlike Anything We’ve Seen Before
Several weeks ago, Janet Yellen boldly declared “I don’t believe we will see another crisis in our lifetime.” For the rest of us who live in reality there is little doubt that the latest Fed-fueled credit bubble will eventually burst in epic fashion and once again lay waste to the personal balance sheets of millions […]
An Insane Bond Market In 4 Charts: “Italian Junk Bonds Yield Less Than US Treasurys”
In our “WTF Chart of the day” from last Friday, we showed something stunning: European junk bonds yields were the same, and in some cases lower, than comparable-maturity 10Y US Treasurys. In other words, the distortion unleashed by Mario Draghi’s CSPP, or corporate bond buying program unveiled last March, has made European junk bonds “safer” […]
T.Rowe Price Issues A Warning For Investors, Cuts Stock Allocation To Lowest Since 2000
One day after DoubleLine chief Jeff Gundlach told Bloomberg TV that it is time for investors to head for the exits as his highest conviction trade is “volatility is about to go up”, and that he is reducing his positions in junk bonds, EM debt and other lower-quality investments on fears investor sentiment may roll […]
“It’s Better To Turn Cautious Too Soon…”
Authored by Simon Black via SovereignMan.com, One of the greatest investors in the world is getting worried… Howard Marks is the billionaire founder of Oaktree Capital, one of the largest and most successful investment firms in the world. A few times each year Marks write up his thoughts about financial markets– he calls them ‘investment […]
Peak Shale: Anadarko Just Became The First US Oil Producer To Slash CapEx
It appears that Horseman Global’s Russell Clark may have been spot on with his bearish take on the US shale sector. As a reminder, in his latest letter to investors, Clark said that “the rising decline rates of major US shale basins, and the increasing incidents of frac hits (also a cause of rising decline […]
What Bond Traders Are Most Worried About Right Now
The latest monthly survey of credit investors from Bank of America, released overnight, shows the same familiar paradox we have seen ever since the start of the year: most survey respondents are allegedly scared worried about geopolitics and a concerned that the market is a bubble, and yet at the same time, most are allocating […]
Warning: the Oil Crash Is Just Days Away From Triggering a Debt Crisis
The Oil collapse is about to trigger a crisis in junk bonds. Oil has been going straight down for weeks now. As we write this, black gold is below $43 a barrel, down 16% from its levels a month ago. “So what?” you might ask, “Oil experiences similar drops all the time. Why is this […]