|
Click to enlarge |
Party is still going on the high-yield / junk bond side (the heavy weight of our index).
On the stocks side, despite a few recent hiccups, leveraged speculation is at record levels, according to margin debt statistics:
|
Click to enlarge |
It will be interesting to see when the rate hikes will begin to spoil the party.
|
Fed Fund rates and LIBOR (in USD) - Click to enlarge |
Or perhaps it is already happenning? Assuming general debt levels have doubled since last crisis (to be confirmed by further research), the "pain threshold" should be logically now around 2.5% (then, it was around 5%).
|
Fed Fund rates and LIBOR (in USD) - Click to enlarge |