Blow baby blow!! Biblical bubbles don’t keep inflating themselves Jay!!
Junk-rated borrowers of all stripes sold a record amount of notes in May, and even first-time issuers have met highly receptive buyers. This has pushed junk bond yields to a record low 3.74%. @business pic.twitter.com/kYHx1Gt1ir
— Danielle DiMartino Booth (@DiMartinoBooth) June 14, 2021
MicroStrategy said this morning it officially completed its $500 million junk-bond sale.
— Brian Chappatta (@BChappatta) June 14, 2021
Based on these margin statistics margin debt is growing at the fastest pace in years reaching almost $860 billion. I think it seems to be on the back of stimulus and low interest rates making it tempting to buy as well as a stock market that keeps going up. Should be interesting to see if this trend continues as we move through a potential “taper tantrum” situation with the fed taking it’s foot off the peddle.