crédit crunch

Chart Of The Day: Why Every Corporate Bond Manager Is Freaking Out

That implicit overweight is a problem because…  the current level of liquid assets as a proportion of total HY assets is about as low as it has been tracking data back around 25 years.

 

and managers all know the market is mispriced…

But also know that it simply cannot handle the flood of sells should a small minority all decided it’s time to sell.

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