Connect with us

Economy

What Could Happen If $1 Trillion Bubble Will Pop?

Published

on

wall street bubble

Gaining a huge bubble at the bottom of the bond market can result to a popping which could put $1 trillion at jeopardy.

According to Matthew Mish with his note to the clients, we accept as true that there is a corporate credit bubble in projected grade credit, and the operational downside risks for high yield bonds and loans are material, with very considerable downside risks to growth.

Mish also emphasized that on the bottom-line of the levels of junk in regards to the surface of corporate bonds, we are having a significant bubble formation.

He also wrote “We believe roughly 40% of all issuers are of the lowest quality, and roughly $1tn which will end up ‘distressed debt’ in this cycle,” Mish wrote. “”Much of the debt was bought to pick-up yield linearly, but the default risk is exponential,” as he added.

Why is this happening?

Read more here…

Click to comment

Leave a Reply

Your email address will not be published.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

Continue Reading

Subscribe To Our Newsletter:

CEOJOURNAL.COM | [email protected] | ADDRESS: 1889 E Maule Ave, Ste G, Las Vegas 89119 Copyright © 2021 CEOJournal. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]