Stocks are rallying this time as credit spreads are widening.
How do you fuck everybody?
— Michael A. Gayed, CFA (@leadlagreport) October 12, 2023
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.
#BTP spread increase is worrying. But not because rising #Italexit risk. Redenomination premium only 4% of total spread (vs 50% in 2012 #Euro crisis or 33% in 2018 govt crisis). BTP largest collateral in already stressed #EUR repo market. Rising spreads could dry it up. Will #ECB… pic.twitter.com/7mJkxtrMco
— 🏳️🌈 Patrick Krizan 🇺🇦 (@PatrickKrizan) October 12, 2023
⚠️WHILE EVERYONE IS #BULLISH SOMEONE IS HEDGING FOR ARMAGEDDON 😅⚠️
Best today is to begin letting numbers speak:
– 18 Oct Expiry: 17,462 OI $VIX C 180 Strike
– 15 Nov Expiry: 22,645 OI $VIX C 180 Strike
– 20 Dec Expiry: 24,844 OI $VIX C 180 Strike
– 17 Jan 24… pic.twitter.com/e3mquHYubN— JustDario 🏊♂️ (@DarioCpx) October 12, 2023
"Why Are So Many U.S. Companies Going Bankrupt?" t.co/stBgSVgZqh pic.twitter.com/PYUasMmcSl
— Financelot (@FinanceLancelot) October 12, 2023
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.