junk bonds

Our take on the investing, financial, & economic themes of the day

The Bizarro Market in Europe

1 June, 2017 by Mark O'Brien in Commentary
The chart below is amazing.  It originates from Bank of America’s Merrill Lynch and shows the yield of European stocks currently exceeding the yield of European junk bonds. So why do I think this state of affairs is “amazing?”  First there is one’s reaction or ... read more...

Reaction to Falling Oil Prices

5 December, 2014 by Mark O'Brien in Commentary
The price of oil has collapsed from about $106 a barrel at the start of the third quarter to about $65.50 a barrel today.  That’s a big move.  Were prices to stay down, the consequences could be equally big. Junk bond funds probably have the most exposure, at least in the short term.  As much ... read more...

The Wall Street Journal Touts Junk Bonds, as the ‘Smart Money’ Prepares for a Correction

5 September, 2014 by Matthew O'Brien, Ph.D. in Commentary
Howard Marks, a well-regarded student of financial markets, is the founder and chairman of Oaktree Capital, which has made heaps of cash by savvy investments in distressed debt.  (I’ve been gradually reading through his book, The Most Important Thing: Uncommon Sense for the Thoughtful ... read more...