There’s a reason why the big boys have been selling and holding cash. The market may not correct right away but when it bottoms it will take years to recover. The difficulty will be determining when the bottom is in.
— JettBlast (@JettBlast00) September 18, 2024
8/ The Fed cuts rates in response to economic downturns
It's the recession that brings the market down
NOT the rate cuts themselves
— Bravos Research (@bravosresearch) September 18, 2024
This unemployment measure you’ve never heard of is flashing a recession warning
Ignoring risk, investors still buying US junk debt with weak protections
Wilsonart’s ability to raise the money highlights a paradoxical trend in U.S. credit markets: while investors are suffering the consequences of weak covenants, they are letting a vast majority of companies sell them new paper with the same flaws without significant pushback, credit market bankers, lawyers and investors said.
The reason, these market sources said, is lack of enough supply of junk-rated bonds and the need to lock in higher yields before the Fed begins to cut interest rates as well as diverging interests between the biggest creditors and small investors.