Tag: Credit risk

High Yield Debt Surges Higher Which Favors the Bulls

26/08/2017

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

23/07/2017

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

24/06/2017

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

31/07/2016

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 »