SPDR S&P 500 (SPY)

[risk on]

Grim, and with this : " every dollar of income going to service debt ", that is untenable, and will not continue. In fact, did small cos in oil / gas not expect oil to come back in price , they wouldn't even be pumping oil at a loss to keep creditors happy. In any other industry , they would just start preparing to fold and get as much in their own personal pockets while they could and just diss the creditors. So, unless oil comes back, and quick, that will be the way. As such , the defaults will be epic. SP rating almost all mid players bonds now at junk status is the proverbial writing on the wall. There will be no bailouts for them , and not for their bond holders either, even if the bond holders are investment banks .

In the housing crisis , similar build up. Many reports about foreclosures increasing , yet no real panic, but then the effects of those " bonds " ( mortgage backed securities ) couldn't be overlooked. That's the way it works , people ( markets ) ignore issues until it's already hip deep in them.