For credit veterans Greensill’s downfall isn’t a surprise with many common red flags long associated with this business
Credit
Too much cash can create a crisis
Financial markets are delirious with stimulus and won’t stop partying until there’s a crash so big that central banks can’t effect a bail out
Credit is Normalising, But…
Credit markets are improving but three dark clouds on the horizon point to the possibility of worsening conditions ahead.
Credit Snapshots – January 2020
Bite size updates on soaring global debt levels, anecdotes of yield chasing and the LIC/LIT fee battle.
Credit Snapshots – December 2019
Bite size updates on Paul Volcker’s legacy, European banks and UK fund lock ups.
Credit Snapshots – November 2019
Bite size updates on emerging market debt, US auto loans and Virgin Australia’s very junky debt raising.
Credit Snapshots – October 2019
Bite size updates on leveraged loans, Greece’s non-performing loan securitisation and India’s bad debts.
BB’s are the new BBB’s
With the drop in overnight rates and credit spreads, credit investors are having to take far more risk to earn the same return