I'm curious how a widening of the credit spreads would impact the Strategy preferreds? I can make a case in both directions, but not sure which matters more.
1. I use Yahoo Finance to keep track of Stocks and markets in general. Is there a way to get a live feed of credit spreads on to my Home page? It would be super useful if yes.
2. Given that you monitor Spreads on a daily basis and you know whatâs what, would it be possible for you to send an Emergency Update to share what you are seeing and your reason(s) for deep concern.
Ya know, whenever I hear someone say, âBut X is contained!â Iâm pretty sure it isnât.
A contrarian version of why credit spreads are so tight isnât that people believe corporations are rock-solid, itâs that supposedly safe Treasuries arenât as safe as they used to be; investors want a higher premium for them, too. Which isnât really any better news than what youâve said here. đ˘
I'm curious how a widening of the credit spreads would impact the Strategy preferreds? I can make a case in both directions, but not sure which matters more.
Great Article James. Big Thanks.
Two Questions:
1. I use Yahoo Finance to keep track of Stocks and markets in general. Is there a way to get a live feed of credit spreads on to my Home page? It would be super useful if yes.
2. Given that you monitor Spreads on a daily basis and you know whatâs what, would it be possible for you to send an Emergency Update to share what you are seeing and your reason(s) for deep concern.
Hoping for a positive response.
Best Regards
Investors demanding higher treasury yields tighten the spread as well, right?
Ya know, whenever I hear someone say, âBut X is contained!â Iâm pretty sure it isnât.
A contrarian version of why credit spreads are so tight isnât that people believe corporations are rock-solid, itâs that supposedly safe Treasuries arenât as safe as they used to be; investors want a higher premium for them, too. Which isnât really any better news than what youâve said here. đ˘
Great article James as always. And very frightening!
PS. Found this Gem from your article on 17 August 2022âŚ.
âThe US debt spiral, a thread...
US Tax revenue $4T
minus: Entitlements $2.8T
minus: Defense $0.8T
leaves: $0.4T
Annual interest exp is $400B (at historic low coupons)
Interest coverage ratio is 1X (solid CCC ratio for corps) (corpse??)
/2â
Annual interest at $400 billion in 2022. Aaaaahhhhhh!!! âThe Good Old Daysâ⌠life was so simple back then.đ