HIGH-YIELD BOND MARKET HINTING AT TROUBLES AHEAD?
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Posted On: 08/15/2014 9:43:08 AM
HIGH-YIELD BOND MARKET HINTING AT TROUBLES AHEAD?
Conrad de Aenlle in the NYTimes: “It’s too early to tell if history is repeating, but as stocks continued to set all-time highs through most of July, high-yield bond prices were eroding ... The stock market experienced a sharp decline starting in late July. Stocks have rebounded over the last week, but high-yield bonds have experienced a more muted recovery. The trading patterns are drawing warnings that losses for both could continue and hinder corporate deal-making and economic growth. ‘High yield is the first sign you have that something could be wrong,’ said Komal Sri-Kumar, president of Sri-Kumar Global Strategies, an investment consultant. ‘It doesn’t have to give rise to a 2008 type of collapse, but it tells you there is excess liquidity in the system.’”
http://nyti.ms/1oN2sCs
Conrad de Aenlle in the NYTimes: “It’s too early to tell if history is repeating, but as stocks continued to set all-time highs through most of July, high-yield bond prices were eroding ... The stock market experienced a sharp decline starting in late July. Stocks have rebounded over the last week, but high-yield bonds have experienced a more muted recovery. The trading patterns are drawing warnings that losses for both could continue and hinder corporate deal-making and economic growth. ‘High yield is the first sign you have that something could be wrong,’ said Komal Sri-Kumar, president of Sri-Kumar Global Strategies, an investment consultant. ‘It doesn’t have to give rise to a 2008 type of collapse, but it tells you there is excess liquidity in the system.’”
http://nyti.ms/1oN2sCs
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