Credit Is Crashing (And It’s Not Just Energy Junk)

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Excessive yield bond costs are collapsing, however it’s clear that liquidity has evaporated as merchants have despatched excessive yield bond ETFs (extra liquid) dramatically beneath its fair-value as they search hedges forward of their liquidation wants.

Right now is HYG’s worst day since Brexit, with value crashing to lowest since April 2016… (HY danger nearing the important thing 500bps stage)

And demand for extra lioquid hedges has despatched HYG beneath its implied worth (as market individuals use ETFs to cowl their e book as a result of they can not transact within the money markets)…

And it isn’t simply power junk – its systemic…

And it is time to begin worrying…for shares…

And VIX…

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The above article is by a guest contributor, or shared from another news outlet.