If the global economy is a machine, and credit its fuel, then banks and the bond market are its twin engines. But we have done nothing to reinforce the bond market and that could be a bigger problem than anyone wants to admit.
Co-founder of Countrywide Financial cast himself as the leader of revolution to expand access to mortgage lending but became the public face of the subprime mortgage collapse.
The legacy of Michael Milken and his junk bonds continues to persist with today s US junk loan market standing at $1.4tn. The HYB market is currently experiencing a high default rate at 6%, coinciding with a surge of the Indian equity market with over 30% of listed companies experiencing gains of over 30% in just three months. Central bank s synchronised interest rate hikes can lead to the uncovering of hidden excesses, just as it did when interest rates reached 5% in 2005 before the Global Financial Crisis emerged. As investors, it is essential to remain aware of potential risks during market cycles.
Good Monday morning! In today’s edition of Your Daily Phil, we report on an initiative by the Conservative movement to train medical professionals to perform brit milah and simchat bat ceremonies, and feature an 0p-ed from Andy Paller and Alena.