Last Sunday I wrote
From all time high to record first half to unmatched highs…in almost all aspects of credit and credit related market activities as seen in global and US M&A, global corporate bonds, global junk bonds, US investment grade bonds, global and US IPOs and to corporate stock and equity linked securities… to record low volatility as measured by record low risk premium and volatility indices, haven’t these been signs of simmering instability waiting for the right opportunity to be ventilated???
Most of the above depicted in charts, courtesy of the Institute of International Finance:
Risk, fear and volatility has been extinguished from earth (for now)
Record High Yield Corporate Bond issuance.
Record Global Leveraged Loans
Record covenant lite loans
Record Global IPOs
“remarkable” leap in emerging market bank assets
All these reveals of extreme overconfidence, excessive complacency, a one way (this time is different) trade outlook, and worst, a debt time bomb.
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