by Bill McBride on 12/14/2015 09:25:00 PM
Monday, December 14, 2015
From the WSJ: Junk Bonds Resume Sharp Selloff
The U.S. junk-bond rout deepened Monday, with the bonds of dozens of low-rated companies falling anew and the shares of some large fund-management firms tumbling as well.CR Note: It is called "junk" for a reason! A large portion of the concern is related to debt of energy companies.
The declines reflected gathering concerns about risky companies’ access to financing, traders’ capacity to sell bonds without causing prices to fall, and ripple effects from the closure of a junk-bond mutual fund.
• At 8:30 AM ET, the Consumer Price Index for November from the BLS. The consensus is for no changed in CPI, and a 0.2% increase in core CPI.
• Also at 8:30 AM, the NY Fed Empire State Manufacturing Survey for December. The consensus is for a reading of -7.0, up from -10.7.
• At 10:00 AM, the December NAHB homebuilder survey. The consensus is for a reading of 63, up from 62 in November. Any number above 50 indicates that more builders view sales conditions as good than poor.
Posted by Bill McBride on 12/14/2015 09:25:00 PM