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Distressed debt balloons to almost $1 trillion, nears 2008 peak

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Bloomberg/Katherine Doherty/3-25-2020

photo of black swans on pond“’What we are seeing now is fast and violent,’ unlike the gradual sell-off in the 2007 and 2008 crisis, said Phil Brendel, a senior distressed credit analyst at Bloomberg Intelligence. If the virus isn’t suppressed, even more distress is possible, according to Brendel. ‘The worst is yet to come,’ he said.”

USAGOLD note:  You get the sense that something is brewing under the surface that when it bubbles up it is going be another black swan (or even flock of black swans) on top of the black swan that’s already landed on the financial pond. Yesterday, Financial Times reported the Dutch bank ABN Amro taking a $200 million loss the equivalent of 10% of its annual profits from one trader going bust and leaving the bank holding the bag.