HY Corporate Credit Meltdown

[P2PFact]

This is what's going on at HY credit market at the moment. I think P2P is classified as HY or structured credit. Interesting to see if the fear will spread into this space. Since there is no secondary market, don't think there will be a sell off. But interesting to see if risk appetite of institutional guys will shrink going forward. 

http://www.bloomberg.com/news/articles/2015-12-14/asian-bond-risk-surges-to-two-month-high-on-contagion-concerns" class="bbc_link" target="_blank">http://www.bloomberg.com/news/articles/2015-12-14/asian-bond-risk-surges-to-two-month-high-on-contagion-concerns

[thezfunk]

From my personal experience, I can say that in the past month I have had to discount notes more than usual to get distressed notes to sell on Folio.

[Lovinglifestyle]

https://forum.lendacademy.com/index.php?topic=3568.msg31533#msg88888888Quote"> from: thezfunk on December 15, 2015, 10:08:40 AM

[Fred93]

I don't put P2P loans and high yield bonds in the same category.

I believe the dip in junk bonds will drive more investors to P2P loans.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3568.msg31535#msg88888888Quote"> from: Fred93 on December 15, 2015, 04:46:04 PM

[Peter]

https://forum.lendacademy.com/index.php?topic=3568.msg31536#msg88888888Quote"> from: P2PFact on December 15, 2015, 09:01:54 PM

[Fred]

https://forum.lendacademy.com/index.php?topic=3568.msg31538#msg88888888Quote"> from: nonattender on December 16, 2015, 01:10:38 PM

[Ran]

LC coupon rate is a combination of risk-free interest rate + credit spread. Credit spread is notoriously volatile. In the current environment, 25bp risk-free interest rate bump is negligible for B grade or higher since their coupon rate is mainly credit spread. However, LC may have to increase A1-A3 grade rate to make it competitive when fed rate increases further

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3568.msg31538#msg88888888Quote"> from: nonattender on December 16, 2015, 01:10:38 PM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3568.msg31591#msg88888888Quote"> from: P2PFact on December 22, 2015, 11:03:27 PM