FYI: Out of the mouths of babes and sucklings, wisdom can sometimes be heard. The same applies to money-losing hedge-fund managers.
In his most recent letter to his long-suffering investors, Crispin Odey accuses banks of keeping unprofitable companies alive by sprinkling them with the "fairy dust" of easy finance. His track record in the past few years -- his European long-short equity fund lost more than 20 percent last year, after declining by almost 50 percent in 2016 -- might lead some to dismiss his comments as sour grapes.
But the data on junk-rated borrowers offers compelling evidence that Odey is correct.
Regards,
Ted
https://www.bloomberg.com/gadfly/articles/2018-01-23/crispin-odey-s-complaint-of-zombies-and-fairy-dust-has-a-point?srnd=fixedincome
