Tag: Credit risk

High Yield Debt Surges Higher Which Favors the Bulls


Following high yield debt is an excellent way to time market swings. A high yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade. These bonds have a higher risk of default and so they pay a higher yield than better quality bonds. Bonds rated below BBB− Read More »

Corporate Bond Yields Spread Falling… Another Bullish Indicator


Corporate bond yields spreads are falling which suggests there is a low default risk. Using Fred and Moody’s we can chart the spread between lowest investment grade (Baa) and equivalent 10-year Treasury yields. Corporate Bond Yields Spread Chart Corporate bond spreads are at there lowest point since 2008. This suggests that markets are pricing in Read More »

Illinois Debt Clock Ticking Down To Junk Bond Status Credit Rating


The Illinois debt clock is ticking. Unless the Governor and the General Assembly set a budget in place by June 30, 2017, and a correctly balanced budget, Wall Street ratings agencies are expected to quickly downgrade the state’s credit to junk status. To give you a clearer idea of just how big Illinois’ pension shortfall Read More »

Deadly Parasitic Derivative Collapse Spreading Through Global Markets


Deutsche Bank may be on the verge of collapse. Last week Deutsche Bank reported Q2 2016 earnings of 20 million euros which is a 98% drop in earnings year-over-year. In 2015, Deutsche Bank announced its first full year of loss since the 2008 recession. Deutsche Bank’s stock is down -60% over the last year meaning Read More »