2017 was a Banner Year for Debt. Spreads continue to collapse and the ease at which leveraged debt is refinanced at lower yields is nothing short of amazing.

Net Issuance of Investment Grade Bonds

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Speculative Default Rate

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Defaults picked up in 2016 with the collapse in the price of oil. A recession, higher rates, less liquidity, or even a change in investor attitudes, can sink speculative issues in 2018.

Repriced Leverage Loans


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Net Asset Purchases

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A number of problems are going to move to the forefront in 2018. Reduced central bank liquidity is one of them.

Meanwhile the Fed is on the lookout for "inflation".

It's right in front of their noses on asset prices including homes, leveraged loan rollovers at ridiculous prices, and equities in general.

Mike "Mish" Shedlock

Junk Bond Bubble in Pictures: Deflation Up Next

The widely discussed "everything bubble" is, in reality, a corporate junk bond bubble on steroids sponsored by the Fed.

Reader "Worried about Inflation, Deflation, Stocks, Bonds, Gold, Everything"

A recently retired reader friend is worried about, inflation, deflation, bonds, stocks, banks, and gold.

Bond Market Dislocation: What the Hell is Going On?

The "Bond Freak" is wondering what's going on. I have an answer from Lacy Hunt at Hoisington Management.

Fed Still Struggles to Get a Grip on the Bond Market

Bond market volatility remains a sight to behold, even at the low end of the curve.

Economists Think Inflation Will Rise Sharply in 2018: They're Wrong

Let's investigate six reasons economists think inflation is about to pick in 2018, and why I think they are dreaming.

An Eye on M1, Cyclicals, and Junk Bonds: What Matters?

Rosenberg says "Keep an eye on M1", others watch Cyclicals, and still others have an eye on junk bonds.

State of the American Wallet: What's in Store for 2018?

As of June 2017, Americans had a record $1 trillion in revolving debt. Nonrevolving debt is growing even faster.

Bond Yields Crash and Gold Soars on Pandemic Threat

The 30-year long bond yield crashed to a record low, gold jumped, and equities hammered as fears of a pandemic mount.

Import Prices Rise 0.4%, Exports 0.2%: Bond Yields Mostly Yawn

Those looking for a bit of inflation can point to import prices and a weak dollar, but the bond market barely reacted.