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/biz/ - Business & Finance

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13503892 No.13503892 [Reply] [Original]

Corporate bond market is the next sub-prime mortgage market, just so you know

https://www.youtube.com/watch?v=oXdKgWe_bb8

>> No.13503937

>>13503892
cool, will you sell me credit default swaps then?

>> No.13504204
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13504204

Thanks for posting, OP.
I'll keep an eye out for this in the coming year(s).

>> No.13504308

Can someone break this down for me? I watched the video. And I maybe understand like 20% of it. What are corporate bonds in the first place?

>> No.13504335

gundlach is a permabear

>> No.13504381

>>13504308
Corporations and government sometimes need money to make capital purchases (If a corporation, for instance wants to build a new factory, and doesn't have sufficient cash on hand, it needs to make up that difference). A bond is then issued, which is a funding instrument. Investor buy those bonds. Those bonds have some interest rate (because a bond is a loan, in essence) which is paid out at a regular rate (annually, semi-annually, etc)

When a bond matures (that is, when the term of the bond is up), the issuer of the bond, whether it be a corporation or the government. pays the investor back his interest.

>> No.13504405

>>13504381
So a bond is a loan but instead of going trough a private institution like a bank they get it from the public who can put their money into it as an investment? And the corporations are in to much debt and overleveraged? So those bonds are very risky and worth a lot less than they are credited?

>> No.13504418

>>13503937
Lol

>> No.13504543

>>13504335
This
I wish deluded permabears could shut the fuck up for a second
It's clearly a good thing to be wary of the market but when you have people like gundlach saying the same doom 'n gloom story since fucking 2011, their credibility obviously weakens

>> No.13504586

>>13504405
yes

bubble will burst

>> No.13504962

>>13504543
Tesla is an overleveraged house of cards for sure. But I'm starting to think that fundamentals don't mean shit.

>> No.13505104

>>13504962
they dont, until they do

>> No.13505195

>>13504962
Because they don't, right now. Things that are in a bubble tend to ingore all fundamentals. You're in crypto ffs you should know this by now

>> No.13505288

>>13504962
>sell signal

>> No.13505329

I wish I had the means to profit from this, but im a broke wagie. I guess the best I can hope for is getting a job that won't get axed when it happens

>> No.13505541

>>13505329
save up, if this does burst. IF. then it would spawn a recession. So just be cash ready to buy the indexfunds when its a firesale.

>> No.13505559

>>13505541
The FED will step in and buy all the junk bonds. Huge rebound

>> No.13505758

>>13505559
Crash has to happen first before FED steps in.

I know FED is super proactive recently but I doubt theyre looking at corp bonds right now

>> No.13505777

Only Newb traders think corporate debt is in a bad place. But go ahead and lose money shorting the market like the other doomertards did