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 ...
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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 ...
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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 ...
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