FAST FIVE: There Is Only One Thing That Can Close The "The Widest In History" Profits Gap
Now, another bank has picked up on what we first discussed almost a month ago, and has provided several interesting perspectives on the issue.
large companies dominated by tech & e-commerce.
Meanwhile, a decade of monetary easing ($12tn CB asset purchases & 784 rate cuts) delivered tight credit spreads but not broad growth, with the lossmaking share of more cyclically-sensitive Russell 2000 firms now just 3ppt from record highs.
Based on their long-term relationship, small-caps imply crisis-like BBB spreads well above 250bps.
Finally, for confirmation the recession can be avoided again, “watch WTI > $65, SOX >1800, BKX > 117, US B HY <350bps (H0A2)." Tyler Durden Fri, 12/13/2019 - 07:57 Tags Business Finance.