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by nabla9
1649 days ago
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While I mostly agree with and everything you say is factual, the danger always lurks where you are not looking.
As we know from the past, systemic risk grows somewhere without good statistics. FINRA Margin Debt shows $940 Billon. There is an additional shadow margin of unknown size. Margin debt, shadow margin, taking loans against properties and buying stocks, ... the size of leverage may surprise us. There may be even larger systemic risk in the corporate debt market. The liquidity of high-yield is questionable and rating agencies (again) seem to be again part of the problem in rating junk as BBB. Bond market is not as boring as it used to be. |
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