One Reason I’m Avoiding Corporate Bonds

Here’s a good chart showing corporate leverage and its correlation to cyclical peaks. This is one reason I’ve been avoiding corporate bonds in favor of Treasury bonds the last few years.

I don’t think the next crisis will begin with mortgage defaults this time around but with a wave of corporate defaults.

Disclosures:

Past performance is no guarantee of future results. All investments maintain risk of loss in addition to gain.

Data from third-parties is believed to be reliable but accuracy is not guaranteed. Much of the data used to interpret the markets and forecast returns are often at odds with each other and can result in different conclusions. Many different factors impact prices including factors not mentioned here.

This is NOT investment advice but merely a general commentary. Individualized investment advice cannot be provided until a thorough review of your unique circumstances and financial goals is completed.