Stocks are rallying this time as credit spreads are widening. Someone is hedging for armageddon!

by
Sharing is Caring!

US corporate bond spreads widen as hopes dim for soft landing

Oct 4 (Reuters) – U.S. corporate bond spreads widened on Tuesday and are expected to widen further after the latest jobs data helped confirm many investors’ expectations of higher-for-longer U.S. interest rates and an upcoming economic downturn.

High-grade bond spreads jumped two basis points (bps) on Tuesday to an average 128 bps over U.S. Treasuries, according to the ICE BofA Index Option-Adjusted Spread.

Spreads have now widened in seven consecutive sessions, moving a total of nine to 10 bps wider during that span, according to a Wednesday note from Dan Krieter, head of fixed income strategy at BMO Capital Markets.

See also  Eurozone spreads signal liquidity crisis; ECB's proactive response remains uncertain.

See also  Are Stocks Poised to Crash 55% Soon?

Another shot for the Phillies to win the World Series and crash market. 2023 looks so much worse than 2022. 

Team has history of knocking it out of the ballpark during recessions.

Wave of U.S. Strikes – Fueled by Inflation, Social Inequality, & Skyrocketing Living Expenses

An upsurge in labor protests is marked by widespread strikes across various major industries. A common thread marks most: protests originate in blue-collar jobs, where wages historically lag behind productivity and corporate profits. Labor unrest in the U.S. reached a peak this year, with 453,000 workers engaging in 312 strikes, the most since 2019. Rising inflation, social disparity, and increasing living costs highlight deepening societal fractures, threatening the foundation of the U.S. economy.