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Wellstone ruled

(34,661 posts)

2. Double B bonds are risky enough

Reply to Quixote1818 (Original post)

Sat Jan 18, 2020, 05:05 PM

Jan 2020

but triple C's,they are Junkers through and through. From what little Bloomberg talked about yesterday,these are mostly Used Car Loans with underlying Credits scores that are sub subprime rated.

Notice the heavy hitters are working the spreads via derivatives and just what could go wrong. Think the Housing bonds of 2006. Junk begets junk. Think these were cobbled together in order to load Pensions Funds and Insurance company annuities with some crap to sell.

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Highlight:

Economist Rosenberg Warns Spread Between CCC, BB Is 'Canary in Coal Mine' [View all] Quixote1818 Jan 2020 OP

'Who is holding onto corporate debt' pbmus Jan 2020 #1

Funny, how there will be money for bail outs but no money for Medicare for All Yavin4 Jan 2020 #5

Not if we have a tax strike. Or a published list of those applying for the bailout. ancianita Jan 2020 #6

Double B bonds are risky enough Wellstone ruled Jan 2020 #2

K&R Thanks for posting. alwaysinasnit Jan 2020 #3

I like Rosenberg. I used to read his notes a lot. Lucky Luciano Jan 2020 #4