Some brief thoughts on credit markets - and thank you thank you thank you for all the very kind words on my last piece!
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In this piece I want to talk about credit markets, the elements of bonds, components of risk, and why things are okay (in general).
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What’s going on in credit markets?
Okay so credit markets - the canary in the coal mine, the flashing red signs at railroad crossings, the “beep beep” that a car does when you get close to backing into another car. Credit markets are powerful - often telling a narrative that the stock market doesn’t fully reflect yet. Because of that, we can examine them when we want to figure out what’s going on (like right now).
But first, for a brief explanation -
Stocks represent ownership in a company, and investors make money here when the stock price increases or dividends are issued, etc.
Stocks are considered ~risky~ because of relatively uncertain …
