David Merkel from the Aleph Blog says It is wise to avoid the area of the market where issuance is well above average

David Merkel from the Aleph Blog says It is wise to avoid the area of the market where issuance is well above average. When money is being thrown at a sub-asset class, like subprime RMBS in 2006-7, or manufactured housing ABS in 2000-1, the results are bad. As it is now, private equity is throwing money at promising companies, many of which hold onto the money for safety purposes, because they don't have place to invest it. That doesn't sound promising for future returns. (VIEW LINK)


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