Bankruptcies steady drumbeat- JP Morgan$HYG $JNK $BKLN pic.twitter.com/izoky5PRZl
— Win Smart, CFA (@WinfieldSmart) August 11, 2023
Credit is the next shoe to drop says Guggenheim CIO$HYG $JNK $BKLN pic.twitter.com/4x2DbwJiec
— Win Smart, CFA (@WinfieldSmart) August 11, 2023
The Credit Market Is ‘Next Shoe to Drop’
The chief investment officer of Guggenheim Partners, managing over $225 billion, is focusing on high-quality bonds and anticipating challenges in the credit market. Despite market optimism, she foresees potential risks, especially for lower-quality borrowers, given the Federal Reserve’s stance and the likelihood of increasing defaults and bankruptcies. While high-quality credit remains relatively stable, weaker credits without significant cash reserves could struggle.
University of Michigan consumer sentiment has just come in at 71.2, below expectations of 71.4
The index reached historical lows in 2022, similar to 1980 and 2008 pic.twitter.com/0Fpj9b3HsF
— Bravos Research (@bravosresearch) August 11, 2023
Producer Prices Confirms Inflation is Sticky
Producer prices rose by 0.3% MoM in July, surpassing expectations and marking the most significant jump since January 2023. This pushed the YoY rise to 0.8%. The increase was mainly driven by a 0.5% surge in final demand services, particularly in portfolio management, which saw a 7.6% price hike. Final demand goods only saw a slight increase of 0.1%, with meats seeing a notable 5.0% rise. Despite these hikes, diesel fuel prices dropped by 7.1%. The data suggests a more persistent inflation than anticipated.