You do not have to be a genius to make that call, the corporate
bond market was sketchy back in 2019, already showing cracks when
the big "Repo's" started in late August of 2019. The
Coronvirus was the match that lit the bomb on all the bad debt that
is coming to light now. The same "Moodys" that rated mortgage
back securities back in 2007. Watch the movie
"The big Short" if you haven't already. This time it will be
corporate debt markets.
Posted by mrjasongill on 27th of Mar 2020 at 03:15 pm
I know, just figured it was worth taking note for trade ideas.
I just got off a call for work where our CEO was reviewing
the landscape. I work for one of the big tire companies.
Sales down 30% ish currently. The way he was talking
sounded like they will use this as an opportunity to make some
closures/trim some fat.
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https://www.moodys.com/research/Moodys-Coronavirus-set-to-negatively-impact-North-American-corporate-credit--PBC_1219338
Posted by ssaffer on 27th of Mar 2020 at 02:46 pm
You do not have to be a genius to make that call, the corporate bond market was sketchy back in 2019, already showing cracks when the big "Repo's" started in late August of 2019. The Coronvirus was the match that lit the bomb on all the bad debt that is coming to light now. The same "Moodys" that rated mortgage back securities back in 2007. Watch the movie "The big Short" if you haven't already. This time it will be corporate debt markets.
I know, just figured it
Posted by mrjasongill on 27th of Mar 2020 at 03:15 pm
I know, just figured it was worth taking note for trade ideas. I just got off a call for work where our CEO was reviewing the landscape. I work for one of the big tire companies. Sales down 30% ish currently. The way he was talking sounded like they will use this as an opportunity to make some closures/trim some fat.