- via Bloomberg
- Among the signs of froth: Investment-grade issuance of nearly $1T this year is on pace to break old records, and junk-bond yields of just 5.8% have tumbled to near post-crisis lows. The final cherry may be the long lines late last week to get a piece of Tesla (NASDAQ:TSLA)'s $1.8B debt offering at relatively puny interest rates.
- "People are ignoring the fundamentals and taking a big leap of faith," says Loomis Sales vet Kathleen Gaffney.
- Columbia Threadneedle portfolio manager Gene Tannuzzo on the Tesla sale: "Elon Musk is a pretty cool guy but they haven’t figured out how to make money yet and that’s not a lot of yield.”
- A big influx of foreign money in the past has marked plenty of tops, and Amundi Pioneer's Ken Monaghan notes overseas cash is no longer interested in Treasurys, but instead investment-grade and high-yield paper.
- ETFs: HYG, AGG, PHK, JNK, BND, PTY, LQD, BOND, AWF, DSL, PFN, RCS, DHY, HIX, PHT, HYLD, EAD, HYT, PFL, EHI, JQC, DBL, BTZ, CIK, DSU, ACP, PCM, SJB, ANGL, JGH, CORP, HNW, SCHZ, NHS, MCI
- Now read: The Slowdown Is Happening
Original article