Premium'Triple-Hooks' In Trouble: Excess Liquidity Can't Sustain A Bad Business Forever
This article is so good
it's for premium members only.
Does that sound like you?
Already a member? Sign in.
PREMIUM
ONLY $30/MONTH
BILLED ANNUALLY OR $35 MONTHLY
All BASIC features, plus:
- Premium Articles: Dive into subscriber-only content, market analysis, and insights that keep you ahead of the game.
- Access to our Private X Account, The Market Ear analysis, and Newsquawk
- Ad-Free Experience: Enjoy an uninterrupted browsing experience.
PROFESSIONAL
ONLY $125/MONTH
BILLED ANNUALLY OR $150 MONTHLY
All PREMIUM features, plus:
- Research Catalog: Access to our constantly updated research database, via a private Dropbox account (including hedge fund letters, research reports and analyses from all the top Wall Street banks)
Authored by James Crombie via Bloomberg,
The junkiest credit gilded its appeal this year, racking up hefty gains as markets turned increasingly risk-on. But rates staying elevated for longer crushes weak borrowers with a lot of debt due, signifying more distress ahead.
Credit investors were rewarded for bravery in 2024, bagging 15% gains from CCC bonds - almost double the return from less risky debt. That builds on last year’s rally which accelerated as forecasts for jumbo easing from the Federal Reserve - which never happened - rolled in.