It's a credit event now. Someone is in trouble behind the scenes. Credit is suggesting a crisis
— GainsPains&Capital (@GainsPainsCapit) March 9, 2020
U.S. credit market fear gauge rises most since Lehman
Emerging Market credit spreads have worst day since Lehman
The Since-2007-O-Meter rises two points to another all-time high pic.twitter.com/DAOYKaNZHA
— Not Jim Cramer (@Not_Jim_Cramer) March 9, 2020
— Invariant Perspective (@InvariantPersp1) March 9, 2020
the problem with bubbles (which the fed has created) is that when they burst (and they all do), everyone gets hurt,even those who werent actively playing the game-like everyday citizens who ultimately lose their jobs etc…the serial bubble blowing fed is public enemy #1, imo.
— bill fleckenstein (@fleckcap) March 9, 2020
Morgan Stanley: Leverage across energy companies
— Andrew W. Park (@apark_) March 9, 2020
Biggest one-day drop in the benchmark leveraged loan index since the financial crisis. The S&P/LSTA Leveraged Loan Price Index fell 2.76% on Monday (biggest drop ever was 3.06% on Oct. 10, 2008) pic.twitter.com/rOXPmRTcXU
— Tracy Alloway (@tracyalloway) March 9, 2020
A steep decline in oil prices and the stock market could trigger a slew of corporate debt downgrades and defaults, analysts say.
“I am concerned. Things have to get worse – you don’t have a move like this end without disorder. It just never happens,” Jeffrey Gundlach said in an email.
It’s often said that inflation is the bogeyman for bond traders. Indeed, accelerating price growth diminishes the value of each fixed interest payment over the years. Investors would be better off buying assets that increase along with prices, like real estate or equities, in theory.This
Dangerous times… we could have a face ripping rally at any point soon on massively oversold sentiment… that might end up being a huge #BullTrap imho.
— PlungeProtectionTeam (@gamesblazer06) March 9, 2020