We posted this article over the weekend… and they call us the crazies? Let’s look at this from a very broad standpoint because if anything displays where we are as a world, financial and otherwise is captured right here!
So, a bond offering with “the worst ever” covenants is three times oversubscribed causing a repricing with less discount and lower yield than originally offered? Is this important? Is it company or industry specific? Or, is it an illustration of something far larger and systemic? I would argue the problem is definitely systemic and certainly a symptom of “mob madness”.
Forget about company or industry specific because as it stands now, over $9 trillion worth of debt all over the world sits with negative yields! We won’t go over the topic of negative interest rates again (as we have several times in the past), because even a 6 year old understands it makes no sense and is untenable from a systemic standpoint. Suffice it to say, a snake can never eat its own tail and live to talk about it.