Warning: CDS (Credit Insurance) Is Blowing Up

by
Sharing is Caring!

by Chris

I’ve been waiting for the junk debt universe to signal “game on.”

It’s doing that now.

Along with the credit spreads blowing out (see above) the Credit Default Swap (CDS) market is blowing up and out for junk debt.

See also  Corporate Equality Index 2023 – New Criteria for the Woke Credit Score
We are primarily funded by readers. Please subscribe and donate to support us!

Now that’s a move.

As OptionSellers.com can confirm, when a market busts a move against you like this it can be impossible to get out of the way.  It blows up and your portfolio blows up.

See also  Total Consumer Debt Hit $17 Trillion. Credit Card And Auto Loan Delinquency Rates Are Raising. 40% Of People Have Less Than $20,000 In Their 401(K) Plan...

In other words, funds are very much on the wrong side of this, and if/when actual defaults show up there won’t be anybody there to pay out on the “insurance” policy.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.