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Credit markets look increasingly dangerous

https://www.economist.com/finance-and-economics/2025/10/02/credit-markets-look-increasingly-dangerous
40•zerosizedweasle•42m ago

Comments

MangoToupe•41m ago
https://archive.ph/buoAZ
FollowingTheDao•19m ago
More from:

https://www.msn.com/en-us/money/economy/the-credit-market-is...

"The overarching concern on Wall Street is that the exceptionally high valuations for corporate debt are concealing excesses in the market and insufficiently compensating investors for taking risks."

If you look at the reaction to the markets the last two days, it makes no sense, adn this is why. It is just investor insanity out there right now. Gold as well keep breaking record highs at the same time the stock market does. Again, makes no sense, unless you think the market is in a huge bubble.

I will bet there is a dump in bitcoin coming.

tree_enjoyer•13m ago
The alternative to a huge bubble is that it's ripple effects of inflation. All assets go up, RE, equities, btc, and gold/PMs because there's simply more money in circulation and so more ends up in investments of all categories.

Perhaps a little of each

FollowingTheDao•7m ago
Yes, is the tiny 25 bp decrease in the Fed Rate we just had partially responsible for this sudden uptick in equities? If so I think it marks a kind of desperation. If there is no where else to invest, like tresuries, they push it in every other market you can.

Or, do they know the job report that did not come out this week is horrible and this is the insider pump before the dump? The Shiller price-to-earnings ratio has climbed to 40.08. Insanity like .com bubble.

cluckindan•12m ago
Watch out, the AI bullbots are coming to convince you that there is no bubble.
FollowingTheDao•6m ago
But my question is; what are the algos trading on? what data, what news?
randycupertino•9m ago
Moody's analysts are already warning of a “Growth Recession” based on corporate credit strain.

> Moody's forecast model for recession, which has had zero false positives, now predicts 49% probability of recession.

> Every time that particular model gets over 50 (50%) we've had a recession. And we've never had a false positive. Never has it risen above 50, and we've not gotten a recession.

https://www.moodys.com/web/en/us/insights/podcasts/inside-ec...

zerosizedweasle•6m ago
"If you look inside any large REIT in the U.S. today, somewhere between 10 and 22 percent is already directly data-center related." Even the safe investments have been infiltrated.
fuoqi•2m ago
If it's an everything bubble, than it may not be a bubble, but a currency depreciation instead (not just $, but all fiat currencies).

Though, personally, I consider the AI trade to be currently deep in the overripe bubble territory.

zerosizedweasle•18m ago
The systemic risk:

"Fitch, a credit-rating firm, notes that the consequences of a potential slump have not just grown—they are also no longer constrained to giant investment outfits. Private-credit firms have marketed themselves to smaller investors, including retirement accounts. At the same time, banks and insurers have lent more to them."

thegrim33•3m ago
It's fun to try to get a picture of people from their post history. Every sociopolitical propaganda post I see, I take a look. Take for example, the OP.

In the last 10 hours they've posted 14 different FUD/doomer economy posts to HN. Surely a normal human decides that's how they want to contribute to HN, how to spend their time. By posting negative fear porn articles about the US economy for 10 hours straight.

Another fun game to play is "how many submissions do you have to go back before you find a blatantly pro-China post?". In this case, for OP, the answer is 22. They have 21 posts of US economy fear porn, followed by half a dozen or so pro-China posts within the next dozen submissions.

Totally normal, authentic, human behavior right here. To the top of HN you go!

bigwheels•1m ago
Pretty please make https://hnrep.xzy which tracks interesting account trends like this <3

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