Friday , March 22 2019
Home / David Stockman's Contra Corner / What The Central Banks Have Wrought: Mindless Monetary Disorder And SDS (Speculator Derangement Syndrome)

What The Central Banks Have Wrought: Mindless Monetary Disorder And SDS (Speculator Derangement Syndrome)

Summary:
“Bond traders are dusting off their tried and true post-crisis playbook after the Federal Reserve’s pivot last month. What they don’t realize is that the game has most likely changed. In an unabashed reach for yield, investors suddenly can’t get enough of the riskiest debt, with the Bloomberg Barclays U.S. Corporate High Yield Bond Index posting a staggering 5.25% total return in the first five weeks of 2019, led by those securities rated in the CCC tier. In the largest CCC borrowing since September, Clear Channel Outdoor Holdings Inc. received orders this week of more than billion for a .2 billion deal, allowing it to price its debt to yield 9.25%, compared with whisper talk of about

Topics:
David Stockman considers the following as important:

This could be interesting, too:

David Stockman writes The Warfare State Uber Alles—Even Bloomberg Is Hosting Pentagon Shills

David Stockman writes The Fed’s Real Unintended Consequence Problem

David Stockman writes Censorship Tightens As Governments Lose Control—Now They Come For Your Mother

David Stockman writes The Fed’s New Balance Sheet Plan: The Ins And Outs Of Keeping .5 Trillion Of Public Debt Monetized

“Bond traders are dusting off their tried and true post-crisis playbook after the Federal Reserve’s pivot last month. What they don’t realize is that the game has most likely changed. In an unabashed reach for yield, investors suddenly can’t get enough of the riskiest debt, with the Bloomberg Barclays U.S. Corporate High Yield Bond Index posting a staggering 5.25% total return in the first five weeks of 2019, led by those securities rated in the CCC tier. In the largest CCC borrowing since September, Clear Channel Outdoor Holdings Inc. received orders this week of more than $5 billion for a $2.2 billion deal, allowing it to price its debt to yield 9.25%, compared with whisper talk of about 10%.”

http://creditbubblebulletin.blogspot.com/2019/02/weekly-commentary-delusional.html

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

Leave a Reply

Your email address will not be published. Required fields are marked *