Lynette Zang: HARD LANDING AHEAD – Are The Credit Airbags Ready?

We’ve just seen something in the credit markets we haven’t seen since 2008. It was clearly more than just year-end jitters. Here’s Lynette with the details…

by Lynette Zang of ITM Trading

For the first time since 2008, no junk bonds were issued in December 2018. “This is clearly more than year-end jitters,” said Guy LeBas, a strategist at Janney Montgomery Scott. “What we’re seeing now is pretty typical for end-of-credit-cycle behavior.” Voila, they too are calling the pattern shift that indicates the end is close.

What about governments and central banks? They have their own problems; Trade Wars, Government Shutdowns, Bexit, Italy, bloated balance sheets and massive deficits with trillions in new government debt required. Who do you think will come first?