Stock market crash: How coronavirus sell-off causes next credit crisis - Business Insider

This milestone and several other big market moves did not escape, a global strategist at Societe Generale who anticipated the dot-com bust and is well-known for his bearish views.

"This time around things are much, much worse than 2008, particularly as the whole economy effectively cantilevers off multiple financial market bubbles," Edwards said in a recent client note. Credit investors are already on notice. The spreads between yields on Treasuries and junk bonds have widened to 475 basis points from 403 since the start of February — the biggest jump since Dec. 2018 — according to the ICE/BofA high yield index.

He said the Fed's continual interventions in periods of market turmoil have kept corporate bond spreads low, warded off defaults, and allowed companies to continue borrowing in excess. These over-indebted companies are now the vulnerable to an economic slowdown that hurts their cashflows.

Convenient in an election year.

Well I mean yeah,it’s not so much the virus that’s gonna cause it directly.But those who are really really worried about this and anxious of the outcome in the coming months. I live in Nova Scotia,Canada no reports yet.And we’re running low/out of toilet paper hand soap and more!

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Next stock market crash: How coronavirus could jumpstart the process - Business InsiderA notorious market bear says investors are making a classic error at the worst possible time — and warns coronavirus 'chaos' could kickstart a 67% market crash what if that's the point?
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market week in review: Outlook mixed amid coronavirus volatility - Business InsiderSome experts blamed algorithmic trading for the wild price swings, while others looked to the past to find how where bearish sentiments could peak. forget about Chaotic... better focus on Intraday Smart Money Patterns in Play... No one knows what truly lies ahead. We can only act on what we see and appreciate the volatility in the market and profit when we see a chance!
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market live updates: Sell-off intensifies, Dow set for 500-point drop, 10-year sinksAfter plummeting on Thursday, stocks' roller-coaster week is set to continue with U.S. stock futures pointing to sharp losses at the open. Good morning permabull charlatans how are you doing this fine morning. Best regards to all your talking head numpties especially Cramer and his never failing best oscillator in the world This is the begining one bright side to all this. If the US would refinance the $23 trillion of debt at 1%, that would reduce annual debt payments to about $230 billion. Manageable with our current growth.
Source: CNBC - 🏆 12. / 72 Read more »