Something Did Blow Up In Junk

• Something Did Blow Up In Junk
  by Jeffrey P. Snider, http://www.alhambrapartners.com/
  … The huge spike in the BofAML High Yield CCC’s last week is proving to be a real event, real trading and possibly a wholesale reset of the whole funding and liquidity environment. “Something” didn’t just blow up in junk, it may have been the whole prior financial paradigm. This has, again, not just financial aftereffects but also deep economic consequences as more and more actual businesses turn toward actively managing a very real combined economic and financial threat, instead of desperately trying to ignore it all as Yellen still demands.
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  What was theoretical before is becoming active circumstances; the media and economists will spin this as “just oil” or “just commodities”, but they also said that oil prices were “transitory”, beneficial and non-concerning in any way. It will be interesting, and vitally important, to see how long manufacturing and general industrial companies can resist marking these same kinds of adjustments with funding and credit applying as much to them.
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