Bond Market Tanks


Bond Market Tanks

bond marBonds were supposed to be safe. If equities were crashing, bonds would stabilize losses, and maybe behave as a counter-balance. Not so in this extremely volatile market.

What is going on? Let’s check in with John Lekas, Finsquared client and portfolio manager of several fixed income (bond) fund and a 30 year veteran of the bond market.

The New York Times. March 12, 2020

“The fact that Hilton and Boeing are drawing on credit lines is indicative of poor sales, and we look for credit spreads to blow out, especially in the BBB- or lower credits,” said John Lekas, chief executive and senior portfolio manager at Leader Capital.

Junk bonds are pricing in a higher level of default and spreads over safer Treasuries widened this week to levels not seen since 2016, using the ICE/BofA high yield index.”

Also published through Reuters to Financial Post, Nasdaq, Financial World,

The New York Times. March, 9. 2020

“The market has not caught up to the facts. We are thinking another 20% or so lower in equity markets this year,” said John Lekas, CEO and Senior Portfolio Manager at Leader Capital, who sees a recession as likely. “Basically we just jumped off a 20 story building and we are at floor 10.”

Investor fears rise over recession, bear market as coronavirus spreads in U.S.

John Lekas offers his thoughts on the bond market to Megan Davies at Reuters. December 30, 2019

The Fed seems to have halted a potential crisis in the overnight lending market — for now

Mark Rose

Founder Finsquared, The New Equation in PR.