
A new warning sign is flashing now, reaching levels not seen since 2008 and indicating the credit markets are in trouble.
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
A new warning sign is flashing now, reaching levels not seen since 2008 and indicating the credit markets are in trouble.
Here's what's happening and how it'll impact your portfolio...
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
A new warning sign is flashing now, reaching levels not seen since 2008 and indicating the credit markets are in trouble.
Here's what's happening and how it'll impact your portfolio...
By Tom Gentile, America's No. 1 Pattern Trader, Money Morning • @powerproftrades -
Use this simple method to get an early read - and profit ahead of time...
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
Private equity firms serve as a startlingly accurate credit barometer. The less productive their behavior, the more likely the cycle is reaching its late stages.
When credit is mispriced, the credit cycle is far advanced, and debt investors should be running in the other direction from bond and loan offerings involving private equity?owned borrowers... because private equity firms are doing two destructive things.
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
At this point of the credit cycle, a lot of securities look cheap.
Business Development Companies (BDCs) are looking exceptionally cheap right now - trading at 82.7% of their net asset value and kicking off very high income of 10% to 17% at the same time.
Due to their structure as closed-end funds that pay high dividends, BDCs are designed to appeal to retail investors.
The problem is that investors often forget that high dividends come with a price - and that price is usually that the loans made by these companies are illiquid and high risk.
And Congress just made the risk much worse...
By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt -
Rather than trust markets to heal themselves, the world's central banks have polluted markets with flawed economic theories and trillions of dollars of debt. Rather than ignite economic growth as they had hoped, however, they have suffocated the global economy.