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Early Days For Bond Defaults and Bankruptcies

Think of a house after an earthquake. The windows may be shattered, there may be cracks in the walls, it’s all very visible. This is like the stock market in March. In contrast, the foundations of the house are not immediately visible, nor is the damage - this is the corporate bond market. As foundations go, right now it’s fundamentally shaky, you just need to dig a bit deeper to see it.

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