Pricing Corporate Bonds? Does the QE effect wear off? Will Corporates have to be repriced?
Dec 31, 2017
Pricing Corporate Bonds? Does the QE effect wear off? Will Corporates have to be repriced? https://s3-us-west-2.amazonaws.com/maven-user-photos/mishtalk/economics/0ecovKym8U6vMOltcykylA/Ig5YcI7kiU-quySvCGXg-A
Jan 1, 2018
Hy might weaken relative to IG but don’t see a catalyst for major widening.
Jan 8, 2018
HYG has since rebounded nicely, which implies that higher interest rates are on a sustainable course, I assume that at some point rates will collapse and the HYG will collapse all things being equal the yield will increase relative to Treasuries. So its a valid indicator to me, and the size of corporate issuance is at extremes, and in a self inflating virtuous cycle? The shock of rate collapse cannot be overstated in this instance it might actually precede the economic collapse, not the other way around.