Read on Twitter
1/ Some nos. behind the much feared widening of CCC spreads: i) The widening is of CCC AND lower rated bonds, not just CCCs; ii) The total amt outstanding of CCC or worse bonds is $89b (excludes issues w/ less than $100M outstanding); $SPY $QQQ $IWM
2/ Of $89b outstanding, $41b r owed by: $YPF $4.6b, Vine Oil & Gas $500M, $UNT $650M, $UPL $580M, $RIG $2.2b, Rio Energy $600M, Offshore Drilling Holdgs $950M, $MDR $1.3b, $MNK $3b, $I $9b, $FTR $10.1b, $FGP $500M, $DNR $250M, $CRC $340M, $CYH $2.6b, $DCEL $4.2b
$SPY $QQQ $IWM
$SPY $QQQ $IWM
3/ By industry, the $41b break out as follows: Energy $12.5b, Telecom $23.2b, Hospital $2.6b, opioid/scam (a/k/a $MNK) $3b. Some thoughts: i) bad E&P cos been going bankrupt for 3 yrs & will be 4 many more - it& #39;s not a canary, it& #39;s a well known stinking cadaver $SPY $QQQ $IWM
4/ ii) Highly levered second tier telecoms exist to go bankrupt - that expectation is built into the markets when those cos. begin to exist; iii) $MNK is a scam.
$SPY $QQQ $IWM ...
$SPY $QQQ $IWM ...
