Junk Rated Stocks Flashing Same Signal as High-Yield Bond Market
- A basket of non-investment grade shares down by half in 2015
- Energy, small-caps taking toll while tech giants buoy S&P 500
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Think equity investors have been blind to warning signs coming from junk bonds? Not quite.
For most of the year pessimists have warned that equity markets were missing signals in high-yield credit, where losses snowballed even as gauges like the Standard & Poor’s 500 Index remained relatively stable. While true, most of that is an illusion of index composition -- not evidence of complacency.