The High Yield Bond ‘Emperor’ Has No Clothes, BofA Warns 1 In 3 Firms Face Default Threat

by Tyler Durden
ZeroHedge.com
03/22/2016

The market reaction from last week’s dovish FOMC statement took many by surprise, including BofAML’s HY Strategy team, but as they say the High-Yield Emperor has no clothes, warning that the underlying commentary provided by Chair Yellen shows the vulnerability for high yield issuers to longer-term growth trends. Couple the deteriorating fundamentals for HY issuers with downgrades outpacing upgrades by a ratio of 3.5:1 and a worsening of global growth potential, and they believe the recent rally, though boosted by strong inflows and cash generation, will ultimately fade.

Bad news is bad news, until it’s suddenly good

The Rest…HERE

This entry was posted on Tuesday, March 22nd, 2016 at 1:11 pm and is filed under Conspiracy, Corruption, Economics, Government Evil, New World Order. You can follow any responses to this entry through the RSS 2.0 feed.