Your 11 year bull market that thrived on low interest rates, and low unemployment encouraged a lot of big dick financial risk taking behavior by large corporations who similar to us kept saying “Can’t go tits up.” This in turn led to a corporate debt bubble that was highlighted as “Risky” by the federal reserves November 2019 financial stability report.
Business debt levels are high compared with either business assets or GDP, with the riskiest firms accounting for most of the increase in debt in recent years.
When companies rack up large amounts of debt, they sell them to cucks as Corporate Bonds. This is known as the corporate bond market. Cucks who own corporate bonds make money by being paid in interest on those bonds.
But what happens when you have a global pandemic where businesses are forced to shut down for an undermined amount of time? Revenue streams dry up and those companies are now at risk of being unable to pay out the interest payments to the bond holders. This results in a default. Once a company defaults creditors set out on horses with massive dildos to fuck the life out of these companies and force them into bankruptcy. Usually by selling off all their assets to pay back the bond holders and creditors.
There are corporate bond ETF’s that you can buy puts on, and that’s probably what I’ll put most of my money into. The corporate bond ETFs below are the ones I was able to find with the most Volume and OI.
Believe it or not, fucking $GME GameStop has issued corporate bonds GUH! and $ALGT allegiant travel has some floating around too. I believe those two companies are to high risk of defaulting given the current conditions.
I read a post by a leverage banker on here yesterday that said the defaults are going to start soon, so I believe this upcoming week would be a good time to get into your positions.
-Good Luck Retards.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.