When investors are ‘reaching for yield’, it’s a sure-fire warning sign.
Past experience shows that when investors get desperate, they’ll start lending money to any old enterprise with a good story, as long as it promises some sort of ‘real’ return.
When investors become that indiscriminate about where they put their money, you can be sure that something will happen to burst their bubble sooner or later.
And the an oil price crash might just be the thing to do it.
Investors have been lending rather too freely to high-risk companies
It’s been a great few years for ‘junk bonds’. As the name suggests, this is the risky end of the bond market….continue reading HERE