Prediction: The Bottom Is Going to Fall Out of the High Yield Market
I was just looking at a broker's run (listing) of high yield bonds for sale.
Hundreds of issuers, all the usual stuff (plus our good friends at the Hellenic Republic, lol).
Unbelievably overpriced! Even after the big equity market slump! There were bonds in there being offered at a premium that I think could plausibly recover zero.
Prediction: The Bottom Is Going to Fall Out of the High Yield Market
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2 comments:
What was the worst you saw? Some of those desks are unbelievable. They have NO interest in providing good advice, only hocking whatever crap is sitting on their books. I interviewed with a team at one of the big guys and they laughed when I told them treasuries and the dollar were going to be the best investments of the next 5 years. Look who's laughing now.
I'd be hard pressed to tell you what was worst. Certainly the homebuilder bonds are overpriced. Also the casinos.
That's a funny story - when did it happen?
One of the problems with those guys is that they watch CNBC all day.
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