The Levered Canary In The Coalmine: High Yield Is Flashing A “Sell Signal”, Says Barclays
by Tyler Durden
ZeroHedge.com
11/21/2014
The growing divergence between equity and credit markets this year have seldom been far from our pages (especially how, over many cycles, credit has led and stocks followed at trend turns), and now it appears Barclays also recognizes this fact. As they note, in 2007, as hints of the financial crisis were unveiled, spreads in the high yield market increased sharply. Meanwhile, the equity market climbed to a new record high. Had equity investors heeded the warning being sent from high yield, significant losses may have been avoided… and currently high yield sell signals suggest equity investors should position defensively!
The Rest…HERE
