Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman

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– Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman (ZeroHedge, Aug 16, 2015):

Just two days ago we warned of the dramatic disconnect between equity insurance and credit insurance markets – at levels last seen before Bear Stearns collapse. As the Yuan devaluation shuddered EURCNH carry traders and battered European assets, US equity markets stumbled onwards and upwards, impregnable in their fortitude with The Fed at their back no matter what. However, US corporate bond markets were a bloodbath…

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3 thoughts on “Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman”

  1. If US bonds were as stable and solid as they used to be before the advent of junk bonds, the Yuan devaluation would have not been a problem. The only reason it’s a problem is because US bonds have nothing in them but debt……Bonds used to be as good as cash.

    Bonds were so clean, people were still allowed to margin them in stock portfolios at 90% of face value. When the junk bonds came along, the bond laws were not amended to protect our markets from the new greedy gut manipulations. Today, bonds are junk, nothing solid remains, and our market is so shaky that any truth telling, even to our investors, is quickly shut down.

    Remarkably, even after the market crashes of 2001 & 2008-09, no laws with any teeth have been instituted to clean up our markets. Instead, the greedy guts still rule, the world has wised up to that fact, but our leaders have not.

    We are in for even grimmer times than endured for the past seven years………..

    Reply

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