Thank goodness we have vigilant, hyper-competent stewards of our financial system such as Sens. Maxine Waters and Elizabeth Warren to ensure no systemic risks are allowed to threaten the solvency of our banks.
What’s going on in the Corporate Junk Bond Levered Funds? 👀 @DowdEdward pic.twitter.com/9XLSpJ5kf4
— Will O'Hara, CMT (@WillOHara131) October 20, 2025
“Bank of America Warns of Forced Stocks Selling If Credit Problems Persist”
“Strategists at Bank of America Corp warn that further signs of strain in the credit market may provoke another broad equities rout as long-only investors are compelled to sell.
A downturn would push funds that track indexes to sell equities, according to Savita Subramanian, as passive investment “dominates the S&P 500″.
….She noted that six out of 10 bear market warning signs that the bank watches have been triggered. Typically, an average of 70% of those signs are set off before the market hits a peak and begins an extended decline…”
"Bank of America Warns of Forced Stocks Selling If Credit Problems Persist"
"Strategists at Bank of America Corp warn that further signs of strain in the credit market may provoke another broad equities rout as long-only investors are compelled to sell.
A downturn would push… https://t.co/trxbkwbze8 pic.twitter.com/INS9JV1Zi3
— kristen shaughnessy (@kshaughnessy2) October 21, 2025
Early signs of trouble are emerging in the leveraged loan market:
The US leveraged loan market is now on track for its biggest monthly loss since at least 2022.
This comes as defaults of First Brands and Tricolor Auto in September have exposed possible weak underwriting… pic.twitter.com/wkXwVmUZVp
— The Kobeissi Letter (@KobeissiLetter) October 20, 2025
Serious credit card delinquencies (90+ days) surge to highest level in 14 years#MacroEdge
— MacroEdge (@MacroEdgeRes) October 21, 2025
h/t Boo_Randy_II