Apr. 7 at 8:44 PM
$GLD $JNUG $SLV $B $GDX
The Leveraged Loan Market Found a Way to Make Defaults Invisible. Reality has already begun to assert itself & watch as redemption requests melt up to the sky & no one will be allowed to take out their cash before it heads to zero which for many it already is & that's why private equity has redemptions capped so low
Companies are still getting into financial trouble—but the system has found ways to delay or disguise it, so it doesn’t show up as a “default” right away.
Instead of defaulting, struggling companies are using financial tricks called LMEs (liability management exercises). The train of thought is “I can’t pay my credit card… so I renegotiate, reshuffle, and move things around so I technically didn’t miss a payment.” & it's private equity that's pushing this
