Warning: CDS (Credit Insurance) Is Blowing Up

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  David Moadel Warning: Stock Euphoria Is At EXTREME Levels

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  UK Inflation posts a warning as it rises above target

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.

1,203 views

Leave a Comment

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