Why bother buying junk?
High-yield bonds (ex-energy) only yield 180 bps above inflation.
Lowest level in history!
Completely unsustainable and poised to revert.
— Otavio (Tavi) Costa (@TaviCosta) December 23, 2019
Uber bullish consensus never ends well.
Implied vol for junk bonds at its lowest level ever.
All previous dips preceded major selloffs in corporate bonds.
High yield spreads are at their lowest level since June of 2007 with record corporate leverage today. pic.twitter.com/eKg8ATSs6R
— Otavio (Tavi) Costa (@TaviCosta) December 17, 2019
Definition of insanity.
Junk bond spreads (ex-energy) now at their lowest since June of 2007 at record corporate leverage! pic.twitter.com/VgMDx140wC
— Otavio (Tavi) Costa (@TaviCosta) December 16, 2019