ALERT: Contagion Is Already Spreading
KingWorldNews.com
May 23, 2016
It looks like contagion is already spreading in the financial sector.
The following is from a Bloomberg piece that was just released today:
Bloomberg: “Bond investors appear to have placed their faith in commodities exceptionalism, with many positing that the recent pick-up in U.S. default rates will defy historical trends and remain confined to that industry.
New research from Deutsche Bank AG pours cold water on that idea, arguing that there are already signs of contagion in junk-rated debt outside of the commodities space.
“Default cycles of the past have never been about a single sector, or small group of sectors,” Oleg Melentyev and Daniel Sorid, Deutsche credit strategiests, said in the note. “Yes, cycles were always driven by concentrated distress but they always found their way to affect other areas of the market.”
The Rest…HERE
