(needs link to corp debt article)
“Wall Street debt issuance off to a record start in 2017”
Financial Times: “The prospect of (interest) rates moving higher prompts companies to lock in borrowing cost.”..”Eleven companies and banks sold $19.9bn of debt in the US as global financial markets reopened after the new year holiday. It is the biggest start to a year on record, according to data from Dealogic and FT calculations. Global issuance surpassed at least $21bn on the day.”…”Those companies selling debt included a $5bn US dollar bond from Barclays, $3bn offering from Daimler’s US financing arm, $1.2bn sale from US package delivery company FedEx and $1bn from tractor manufacturer Deere & Co. “
Editor CEC adds: We notes that banks and big industrial companies are not the only ones that want to sell overpriced and overrated bonds. China, Japan, and other nation creditor of the USS are also be unloading Treasury bonds, bills and notes debt (TD) at recored pace, and you may own them. (link)
Is this a healthy situation? Yes, its very heathy for those who are selling, but not for me. Governments, professional bankers and investors unloading on the public1 Our social security, pensions, 401(k) and mutual funds are loaded with overpriced TD, and Corporate bonds many of which are little better than “junk”. What should individuals do?
WHTT does not sell or advise, but we worry about our friends who believe they can trust Walls Street. I was once there! Here is what I would do. Look at your managed plans and IRA, and tell your manager to get you out of any funds that hold TD or Corporation debt. Tell him its OK to own TD that matures in less than a year. Tel him to move some of your assets into Gold, or companies that produced lots of it! Do not buy stocks, but wait a while to sell those you have. Right now we are in a giant Trump rally, but Something big is coming down, and it ain’t good! (link)