Spot on. There is a formula that you can take into account the anticipated default rate and the spread between junk and treasuries to see if there is an arbitrage opp, but generally speaking yes. So with equities responding well to trump yet junk bonds tanking, wonder if this is the canary indicating distribution? That said a widening spread is probably more indicative of issues.
The Big Boys, page-786
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Last
10,302 |
Change
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