Read more on this subject: Economy – Economics USA
News Story Source: https://www.zerohedge.com, Tyler Durden
And yet, contrary to expectations, both investment grade and junk bond spreads blew out in the past few months, catalyzed by the spike in real yields, the February VIX/vol ETN fiasco, the surge in $ Libor and the recent escalation in the US Chinese trade war…
… which in turn has sent the HY/IG ratio tumbling, as junk has sharply outperformed IG.
This led Citi's Hans Lorenzen to conclude the "2018 is not going to plan", prompting him to ask what's going on: "a succession of unhappy coincidences or something deeper?"
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