Its Over, page-13719

Just Three 25bps Rate Hikes have Delivered a lot of Stress


CCCs are out across 12%, after seven straight weeks of losses. Financial conditions are tightening far faster than the Fed realizes.  The funding window has shut down. Per Bloomberg, this month is on track to the slowest May since the global financial crisis of 2008. The year-to-date volume stood at $55.3b, a drop of 75% from the comparable period last year. Quality names are taking a beating – the average investment-grade corporate bond spread is at +150 basis points, the highest since July 2020. Credit markets have a veto on your plans Mr. Powell.