US credit markets dry up as volatility rattles investors

[Guy Whitey Corngood]

https://www.ft.com/content/1acdfbe0-00be-11e9-99df-6183d3002ee1


US credit markets are grinding to a halt with fund managers refusing to bankroll buyouts and investors shunning high-yield bond sales as rising interest rates and market volatility weigh on sentiment.

Not a single company has borrowed money through the $1.2tn US high-yield corporate bond market this month. If that drought persists, it would be the first month since November 2008 that not a single high-yield bond priced in the market, according to data providers Informa and Dealogic.

In the leveraged loan market, two transactions were postponed last week after Barclays, Deutsche Bank, UBS and Wells Fargo failed to find buyers for the debt packages, a rarity in what has been one of the hottest corners of credit markets this year.

The deals could be the first of several transactions pulled from the market this year, bankers and investors said, as mutual funds and managers of collateralised loan obligations — one of the largest buyers of leveraged loans — wait out the uncertainty. 

[SWBTATTReg]

1. Another drop in the bucket for the upcoming economic slowdown that's coming...nt

[Johnny2X2X]

2. What a shame

We never learn in this country. Supply side economics leads to ruin.

The economy has slow and steady growth with low inflation for 7 years under Obama. Trump has ended that with his supply side BS, we got a couple good months of growth out of it and a deficit that exploded.

Go help us. When a President's economic decisions really matter most is when a recession hits. What they do then will determine the depth and length of the recession. Trump is going to fail miserably and this recession will be much deeper and longer than it could have been.