⚡️🚨 NEW - Things are not looking good…
⚡️🚨 NEW - Things are not looking good for corporate bonds...
Several companies have issued bonds and are seeing their debts collapse in a matter of weeks.
We're talking about losses of over 60% for investors. Several examples raise questions:
➥ Saks (luxury stores): restructured its debt after paying interest only once
➥ Tricolor (auto loans): sudden bankruptcy due to fraud, bonds now worth only 10% of their initial price
➥ First Brands (auto parts): borrowed $10 billion without anyone really understanding its business
The problem is that normally, a corporate bond deteriorates gradually when the company is doing badly.
Here, we've gone from "everything's fine" to "total loss" in a matter of days. This is unprecedented.
Too much money is looking for a place to be invested.
Investors will accept anything to invest their funds, even shady companies.
They are abandoning all contractual protections just to get a little extra return.