A ‘Tsunami’ is About to Overwhelm the Debt Market


A ‘Tsunami’ is About to Overwhelm the Debt Market

A tidal wave may be coming to the bond market, and it’s not going to be pretty.

At least that’s the view of Matthew Mish, credit strategist at UBS. To Mish, the elevated rates of default in the commodity sector and high risk bonds are a harbinger of things to come for the broader debt market.

“First, our quantitative framework is signaling a broader deterioration in the default outlook, with our model projecting default rates of 4.3% over the next 12 months (versus 2.6% one year prior),” Mish wrote in a note to clients on Thursday.

Mish’s research asks whether the recent uptick in default rates is simply a “rogue wave” that will dissipate or the “start of a tsunami” that will bring the rate of defaults much higher over the long term.

More here…



One Response to “A ‘Tsunami’ is About to Overwhelm the Debt Market”
  1. You know you can be in litigation in class action law sue mortgage fraud and fraud to commintconversion etc mortgages companies are still foreclosure I am involve in a class action law suit and they put a sale date on my home no matter what you do mortgages banks are still stealing people homes they don’t own the note remember destroyed through mers

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