Credit Has Cracked, And Now The CLO Defaults Begin | ZeroHedge

Last Friday we reported that credit is “cracking”, quoting from the ominous words of BofA strategist Michael Hartnett who chose to describe the bond markets currently, and as we noted, “it is a very ugly picture indeed – for both price… and flows.”

The defaults also come at a time when leveraged credit is reeling from a plunge in prices, wider spreads and massive outflows from high-yield funds. Primary markets in Europe continue to be shut, with no junk-rated deal in public syndication for about a month now…

Credit Has Cracked, And Now The CLO Defaults Begin | ZeroHedge