Thursday, August 14, 2014

JUNK BONDS STILL NOT CRASHING: here's what Business Insider needs to stick in their pipe and smoke


That look like an ongoing crash to you?

It's looking more and more like the ERMAGERD $7 BERLLIERN ERN ERTFLERS! was nothing more than some amateur hedge fund moron bid-smashing a sell order for no reason.

Then again....

$7B in outflows dropped junk by 4%, which then freaked out the equity market, which then popped $VIX by over 50%.

So junk is a point of easy leverage against the $VIX.

I mean, you can puke $7B of junk, then after $VIX pops you can take a short VIX position that makes you a 50% profit as the equity market recovers.

Looks like easy money.

Then again, Hanlon's razor:
Never attribute to malice that which is adequately explained by stupidity.

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