“This Will End Badly” High Yield Bonds Tumble To Worst Since 2011…” U.S. stock investors have lost touch with reality.”

Wednesday, August 12, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
08/12/2015

>As far as credit markets are concerned, U.S. stock investors have lost touch with reality. As Bloomberg reports, the collapse in high-yield bonds “is something that sooner or later is going to impact the stock market,” according to one major asset manager.

We have, of course, seen this picture before (most egregiously in 2007/8) and as Bloomberg calculates over 70% of the time since 1996, as spreads widened as much as they have since April, the S&P 500 has fallen, with the average decline exceeding 10%.

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