Back on Jan 5th, 2022 I posted that junk bonds were breaking key area.
One month later it's collapsing as expected. This is very bad for Zombie companies as their borrowing costs rise without pricing power, how will they deal with rising unit labor costs and raw material inflation?
Yes...Think Evergrande and all the other Zombie companies kept afloat on EASY money .....Inflation - supply problems - Labor Costs - recession and lower consumer spending will all converge into an epic FAIL....since when can a C rated company borrow at 4% ---INSANITY --people assumed HUGE risk to get a little yield