Our concerns over what has been an on the surface deteriorating risk/return setup are, alas, compounded by what we see brewing beneath.
Here's from Bloomberg this afternoon:
"The U.S. high-yield bond market is booming, with $222 billion in new issues so far in 2019, a 31% increase from the year-ago period. The smaller world of distressed debt -- bonds that trade 1,000 basis points above equivalent U.S. Treasuries -- is also increasing.
That may be a sign of looming stress in the U.S. market."