Dec
15
The bond market is often dubbed the “smart money,” with fluctuations in fixed income believed to portend broader market moves.
But in the case of recent carnage in junk bonds, the so-called smart money was actually the slow money, according to strategists at Goldman Sachs.
Whether one uses the Markit CDX North American High Yield Index, a basket of derivatives tied to 100 junk-rated companies, or the HYG exchange-traded fund as a proxy for the performance for the debt sold by companies with riskier balance sheets, the stocks of these corporations were what led the way down, the strategists contend…
Forget About Junk Bonds, This Is the New Credit-Equity Disconnect Investors Should Be Watching
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