Blain: “Stop Worrying About The Yield Curve, Something Much Worse Is Around The Corner”

Jon Alternative Media, Blogosphere, Economy

From Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners
Stop worrying about the US yield curve – its a distortion. Something much worse is around the corner….
A bit of a feeding frenzy in the new issue primary bond market as 21 deals hit the screen and went fairly well. With Thanksgiving tomorrow it’s likely the tail of the week will be very quiet, but our primary trading team reckon there is still plenty of momentum. We’re likely to see another two weeks of proper activity before the holiday slowdown. There are a large number of deals queued up and still to come to market.
I wonder if the Credit Markets will be as busy next year?
It rather depends. Regular readers will know I’m uber-bearish and expecting the big bond market crash coming sometime soon, but others point to the US yield curve as evidence of a slowdown and therefore favourable conditions for the bond binge to continue – what’s not to like for issuers looking for almost zero cost money?
Frankly, there is far too much guff and nonsense about the US yield curve… so, it’s time for me to scare you some more, and add some Blain mumbo-jumbo to the mix.
It’s pretty simple.

This post was published at Zero Hedge on Nov 22, 2017.