Good Morning Friends! Remember how I was telling you back in the Day (probably last week) that as credit spreads widen the greatest pressure will be felt by banks that can not borrow money via bonds?
Yesterday seven high grade US companies pulled bond issuance when credit risk spiked and inflation came in hotter than expected. Volume for the week is at 10 Billion vs 35 Billion, and Junk Bonds (corporate bonds) are drying up as well. Growth is too Robust, but will suddenly start dropping rapidly, so avoid ‘buying the dip’ blah blah; that is murder suicide homicide pancakes for your accounts!!
Morning Update – May 12th, 2022