The high yield debt chart is very troubling IMO. If we overlay the S&P 500 and the high yield debt chart, a huge bearish divergence is revealed. Check out this chart with the red line being the S&P 500 and the purple line being high yield debt.
High yield debt (purple) is nowhere near (Read More….)
The increased volatility that we have been waiting for finally arrived last week as institutional traders clean house as they return from summer vacations. Corporate debt offerings surged as company’s looked to roll over financing costs ahead of a potential Fed rate hike by the end of the year. The August ISM Services reading hit (Read More….)
China’s manufacturing sector continues to contract. The Caixin China General Manufacturing PMI for June came in at 48.6. For the last three months in a row, China’s PMI has come in below 50.
Chinese corporate bond market defaults are on the rise. So far in 2016, 34 defaults are on the record books totaling (Read More….)
China’s soaring bond debt is nothing new. What is new is how the IMF’s number 2 official urged China to take immediate steps to tackle rising corporate debt or risk “dangerous detours” during the country’s transition to a consumption-oriented economy.
David Lipton, the IMF’s first deputy managing director said, “Corporate debt remains a (Read More….)