A stormy day for the stock markets across the board. As risk aversion dominates the first trading session of 2016. Based on inter-asset correlations and risk-aversion from a technical perspective, the medium term outlook for U.S. stocks and risk appetite seems gloomy. The High Yield Bonds Market Also called the Junk bonds, were one of the earlier asset classes that signaled something wrong is going on. Junk bonds are very sensitive to growth, sentiment and liquidity. Junk bonds tend to move higher when the overall sentiment is positive and liquidity is high. As investors will tend to invest in high yielding risky assets, searching for ...
