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.
It's now free to buy #Bitcoin at a price that's *checks notes* 21% higher than when it priced the securities last Tuesday. $MSTR pic.twitter.com/q2sNBbKf2Z
— Brian Chappatta (@BChappatta) June 14, 2021
Margin Debt Is Growing at its highest pace in over 20 years
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.