Meanwhile, long-dated Ford bonds also falling to new lows today. I find this interesting because there are pockets of stress in riskier credit that seem to be deepening, even with the Fed stepping in & buying higher-rated credit. pic.twitter.com/gbCXwwPB0T
— Lisa Abramowicz (@lisaabramowicz1) March 31, 2020
#liquidity
The banks provide financing facilities called warehouses, which CLO managers use to buy risky debt known as leveraged loans before they package and sell them as bonds. Wall Street banks have roughly $10-$12 billion of exposure to the warehouses.t.co/ZkIACRb0WE— Tim (@MillennialMacro) March 24, 2020
A credit hedge fund told clients it was suspending redemptions for the foreseeable future because it didn’t want to be a forced seller in what it called “dysfunctional” credit markets. t.co/Sgm4YA8ZpF
— Lisa Abramowicz (@lisaabramowicz1) March 31, 2020
For a sense of how big some earnings surprises may still be in the face of Covid-19 disruptions, check out Envision Healthcare debt. @KatLeighDoherty reports that the company told investors it fully tapped its revolving credit line & may have negative earnings. Bond prices plunge pic.twitter.com/nf4erVWhSE
— Lisa Abramowicz (@lisaabramowicz1) March 31, 2020
The Crash of 2020 pic.twitter.com/cCnMUEyubq
— Keith McCullough (@KeithMcCullough) March 31, 2020