It looks like the financial world is going to have to rerate risk. ie instead of paying 7-8% for junk bonds they (the financial world) is going to have to pay 10%+ for junk bonds. That rerating means that most of the banks/hedge funds/insurance etc are going to have problems as their junk bonds just lost a chunk of money. How long before they acknowledge them. Looks like slow water torture. imho
MBL
macquarie bank limited
It looks like the financial world is going to have to rerate...
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