When is it gonna pop?
Wow, that was fast and huge. This junk-bond market is in peak-bubble mode.
That would be a first, but it might be happening. Everything in slow motion, even market declines?
The two-year yield, now surging, is a leading indicator.
Bonds, junk bonds, spreads, commercial real estate, leveraged loans, over-leveraged companies… all get named as risks to the banks. This is why “gradual” tightening will continue for a long time.
Happily dreaming in La-la-land till the rude awakening.
Corporate America fears that a Trade War would hit supply chains in China.
Well, they do pay higher rates, but not to their own clients.
Wells Fargo has $81 billion in exposure to loans that, on paper, it isn’t exposed to.
Wolf Richter with Chris Martenson on Peak Prosperity’s Featured Voices.