Corporate Bond Bubble

I'm not expecting to grow flowers in the desert
But I can live and breathe and
See the sun in winter time
--Big Country

David Stockman laments the corporate bond bubble which in turn has been funding the stock buyback bubble. He reports that corporate bond issuance is tracking at a staggering $1.4 trillion annual rate. Nearly all debt issuance proceeds are being used to buy back stock. In February, buybacks of S & P 500 company shares totaled a record $105 billion.

Meanwhile, real business net investment--what used to be the primary reason for borrowing--has been plunging.

Another massive misallocation of capital engineered by the Fed.

position in SPX