Credit Market Turmoil: BofA says Non-IG Bonds Defaults will be >20%

Just to get in front of the “Fed will buy everything, so no problem, bro” sentiment…the analysts understand that. Also, as I continually say the Fed buying bonds means tighter spreads; it doesn’t mean the companies can pay even at tighter spreads.

If companies don’t have the revenue to service the debt, they default. And the Fed can spend $50trln to buy bonds, and it won’t push on the string.