Wolf Street pens a warning.
Why would corporate giants suddenly pile into the corporate bond market with large-scale new issuance in September at these high interest rates? Why not wait for that Fed pivot and rate cuts that must be coming any moment, no?
Because they want to lock in these interest rates that they can still get, before rates rise even further. These companies are not betting on rate cuts....
One example: T Mobile, which is issuing a couple billion in 30-year bonds at about 6%.
How come?
...All eyes are on the upcoming CPI report on Wednesday, and everyone knows it’s going to be a bad “surprise,” with more bad inflation surprises to be followed later in the year....
The only 'good' news here is that the Biden Regime is going to get massacred in '24, and will likely take all vulnerable Democrat legislators with them. The bad news? Not enough MAGA Republicans.
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