US corporate-bond issuance stagnates
No companies have issued investment-grade bonds in the US in the past 10 days, the longest dry spell, not including Christmases, since 1995, according to Dealogic.
This is interesting to me because I have a little feeling corporate bonds might take the blame for this recession some how. Its not all over the news but its basically been in its own bubble with much more than normal volatility when compared to noncorporate/government bonds. I dunno. If people start throwing it around on tv maybe they could make a shit storm out of it and blame greedy executive boards or whoever. And it has two parts. Corporate bonds are about 3.5x larger in issuance than sovereign bonds. In 2000 corp was 5 billion, sov was 4 bilion, 2007 corp was 10 billion, sov got up to 5 billion the prior year, 2015 corp is about 35 billion, sov about 8. So governments are going by normal growth while companies are probably way too high. Gotta love all that debt money coming in though. The second part is how about 85% is in foreign currencies other than USD. the world in general is contributing and probably more vulnerable than the US. To top it off, all the bonds could easily be peaking since its in a 10 day dry spell, which hints at an upcoming stock crash.
Who to blame, who to blame…
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