U.S. Junk-Bond Yields Drop Below 4% for the First Time Ever

davfor

Another sign of the times:

The measure for the Bloomberg Barclays U.S. Corporate High-Yield index dipped to 3.96% on Monday evening, making it four straight sessions of declines.

Issuance conditions have been so conducive that some of the riskiest types of transactions come to market, such as bonds that are used to fund dividends to a company’s owners and so-called pay-in-kind bonds that allow a borrower to pay interest with more debt.

Junk Bonds

LewisBraham

This is not a good sign.

davfor

A couple more things to do with some of that idle cash:

davfor

It's a day full of positive chatter. Here is another way to make some money during the Easy Money Bubble (a rerun of the turn of the century?). Let's hope the MMT folks are right and the Fed can successfully pivot:

“Given the amount of liquidity in the system thanks to the U.S. Fed (Federal Reserve), all asset prices are inflated. We see prices reaching $80 per barrel next year and there is an outside chance of a $100,” said Amrita Sen, co-founder of the Energy Aspects thinktank.

Oil Hits 13 month High