LQD - McCullough: 'Biggest Bubble In Corporate Credit History'
We’re not in the hyperbolic, click-baiting business of labeling markets bubbles. That said, certain market components can absolutely look and behave like bubbles.
Hedgeye CEO Keith McCullough recently posed this question in regard to bubbles: “Why do you have the biggest bubble in corporate credit history?”
You have the all-time lows in credit spreads, pretty much the lowest level of interest rates and access to capital, and you have the all-time high in year-over-year earnings growth fully loaded with tax reform,” McCullough explains.
“That’s why people felt safe putting leverage upon leverage upon leverage. It’s