Corporate Bonds Tell A Scary Story For The Stock Market by Evergreen Gavekal Blog
"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." - Renowned MIT Economics Professor Rudi Dornbusch
EVA Summary
- In the spirit of Halloween, this month’s Guest EVA features a spooky Poltergeist-themed article from former Fed insider, Danielle DiMartino Booth.
- In her letter, Danielle warns that signs of stress are starting to show in the $200-plus trillion corporate bond market and the conditions are now in place for the next corporate default cycle (which is clearly underway in the energy and mining sectors).
- If she’s right, the damage we are already seeing in both investment grade and...
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