Direxion Daily 20 Year Plus Treasury Bond Bear 3x Shares ETF (TMV)

[Pro-Life]

Yuan Devaluation Sparks Biggest Crash In US Corporate Bonds Since Lehman
Submitted by Tyler Durden on 08/16/2015 12:04 -0400

http://www.zerohedge.com/news/2015-08-16/yuan-devaluation-sparks-biggest-crash-us-corporate-bonds-lehman

BofA's conclusion:

The key reason for this weakness is that our market has transitioned from “too much money chasing too few bonds” to “too many bonds chasing too little money”. That shift is motivated by the impending Fed rate hiking cycle as issuance, M&A and other shareholder friendly activity has been accelerated while at the same time demand has declined. Again, we are not trying to predict a crisis – only to point out that the upcoming rate hiking cycle appears to concern issuers and investors so much that they have been taking real actions that have repriced our market lower relative to equities to an extent that we have only seen during the financial crisis.

We can't wait to find if this is the first time in the history of capital markets when it is stocks that are right, and bonds wrong.

And as Alhambra's Jeffrey Snider concluded rather ominously,

The cumulative assessment of all these factors, great as they are in their individuality, is that the global financial system just endured this week another “dollar” run. We can say with some reasonable assurance there was one in early December, as well as one centered on October 15.

They seem to be increasing in intensity and now reach, penetrating deeper into the bowels of the “dollar” system as well as taking down central banks with each successive wave.
We have, of course, seen this picture before (most egregiously in 2007/8) and as Bloomberg calculates over 70% of the time since 1996, as spreads widened as much as they have since April, the S&P 500 has fallen, with the average decline exceeding 10%.

History may not repeat but it sure does rhyme...

There's a scary story at the link above with plenty o' charts...