Since Credit “Leads”, What’s the Macro Message Coming From Riskier Areas of the Credit Universe?

If credit leads and equity confirms, the message riskier areas of the credit universe are currently sending is far different from the one they were sending through much of 2007 and early 2008 as they deteriorated significantly in front of equity market downside globally.

Riskier credits are breaking out to new highs in many cases and challenging trend-line resistance in others for potential break-outs.

Maybe it’s a hunt for yield, but one would think an imminent global recession would be sniffed out here first, correct?

Regardless, these risky areas of the credit universe are actually holding up and acting quite well so far.

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