Forced selling in the once red-hot $1.3-trillion “leveraged loan” market.
The Junk-Bond Market Just “Puked.”
The Fed has warned about them, and investors fear a run-on-the-fund.
Instead of “bubble” or “collapse,” it uses “valuation pressures” and “broad adjustment in prices.” Business debt, not consumer debt, is the bogeyman this time.
In detail: ‘Collateral Stripping,’ ‘Incremental Facilities,’ ‘Cov-Lite,’ & ‘EBITDA Add-Backs’
Will this Scheduled Bloodbath in Corporate Debt Deter the Fed?
Credit bubble reflates. PE firms back at it. Investors go blind.
Everyone but China.
Distress ratio spikes to Financial Crisis level.
“Distress” in Bonds Spirals into Financial Crisis Conditions