Warning Signs Similar To Bear Stearns In 2007? Bond Spreads Narrow To Lowest Since 2007

Sharing is Caring!

The gap or spread between high yield debt (junk bonds) and investment grade corporate bonds is now the most narrow it has been since 2007.

See also  Powell Gave Congress Dovish Signs: Will It Help Gold?

And what happened in 2007?

A number of hedge funds owned by former famous investment bank, Bear Stearns, started failing thanks to too many bad (over leveraged) bets on subprime housing and mortgage backed securities.

See also  US 30-year REAL Mortgage Rate Plunges To -2.35%, The Lowest Since 1975, House Price Growth Highest In History



Leave a Comment

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