from Wolf Street
Well, not markets. Fed-managed paper exchange.
Never mind the Pandemic or the huge blob of corporate debt that even the Fed publicly fretted about before the Pandemic, only to do everything it could to fatten up this huge blob of corporate debt even further during the Pandemic. And never mind the credit risks – the risk of default and bankruptcy – that this corporate debt poses. And never mind that entire over-indebted industries saw their revenues collapse. Come to mind airlines, cruise lines, mall retailers, mall landlords, restaurant chains, hotels, hotel landlords, movie theater chains, or of course the entire shale oil-and-gas sector. And just don’t worry about the risk of inflation and the existence of inflation. Just never mind any of this, because, I mean, it just doesn’t matter: Junk bond yields have dropped to a record low.