Courtesy of Mish.
The first half of 2014 sported record junk bond sales by investors thirsty for yield, no matter how absurd the covenants or how risky the investment.
Things may have changed in July as the following chart shows, using JNK (the Barclays High Yield ETF) as a proxy for junk bonds.
JNK Daily
click on either chart for sharper image
On a weekly chart, however, the dip doesn't even register.
JNK Weekly
So while this could be the start of a decline, it might also be nothing.
With that backdrop, please consider Bloomberg's report Junk-Bond Indigestion Burns Buyers Gorged on Record Sales.
Junk-bond buyers are showing signs of indigestion after snapping up a record $361 billion of the debt at the lowest yields on record.
Speculative-grade bonds from the U.S. to Europe and Asia are set to post losses this month for the first time since last August after high-yield debt funds suffered the biggest weekly withdrawal of 2014 …
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And It's Gone
A reader reminded me of this South Park clip that explains everything you need to know about risky investments.
Link if video does not play: And It's Gone
