The Liscio Line -- Whistling Past the Junkyard

Dear colleagues,

With Halloween upon us and frightening movie trailers dominating ad time on most networks, scenes from my own scariest cinematic epic keep creeping to mind. Of course I refer to Poltergeist, the classic Steven Spielberg supernatural thriller that gave new meaning to the perils of screen time. As horrific as Carole Anne’s abduction by evil restless spirits was, it was Robbie’s tale of terror that left the most lasting imprint. That malicious clown, those hair-raising thunderstorms and that wicked, wicked tree. To this day, I get a sick sense driving into downtown New Orleans, past all those above-ground crypts. Suffice it to say, Poltergeist’s underlying message – to leave those resting in peace in their serene slumbering state – ripped away the levity of the quip “Whistling Past the Graveyard” for an entire generation of impressionable young Americans.

And yet, the barrage of headlines about the junk bond market does give me pause. As the Financial Times reported just yesterday, yields have shot up since the start of the year, rising above eight percent in October, to their highest levels in three years. Are yield-starved investors who continue to look the other way whistling past the Junkyard? Or are they simply savvy souls who know public pensions keep pouring fresh money into credit, seemingly oblivious to the dangers lurking in the massive $200-plus trillion bond market? Read on and you tell me.

https://tlrii.typepad.com/theliscioreport/2015/10/whistling-past-the-junkyard.html

Best,

Danielle

For those new to my work who I’ve just met in Chicago and Las Vegas, as is my custom, below you will find my full written archive accumulated in the four months since I’ve left the Fed.

ARCHIVE

PEAK 2 PEAK

https://tlrii.typepad.com/theliscioreport/2015/10/peak-2-peak.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheLiscioReport+(The+Liscio+Report)

Fear Factor

https://tlrii.typepad.com/theliscioreport/2015/10/fear-factor-.html

Tiny Bubbles

https://tlrii.typepad.com/theliscioreport/2015/09/tiny-bubbles.html

Illiquid Plumber

https://tlrii.typepad.com/theliscioreport/fed_watch/

Help Wanted: Fearless & Grounded Central Banker

https://tlrii.typepad.com/

Angels Manning Heaven’s Trading Floors

https://www.interdependence.org/blog/angels-manning-heavens-trading-floors/

Trumped Towers

https://tlrii.typepad.com/theliscioreport/2015/09/trumped-towers.html

Sunset at the Bakken Club

https://tlrii.typepad.com/theliscioreport/2015/08/sunset-at-the-bakken-club.html

Drafting the Dodge – A Mother’s Battle Plan to Combat the Currency War

https://tlrii.typepad.com/theliscioreport/2015/08/drafting-the-dodge-a-mothers-battle-plan-to-combat-the-currency-wars.html

You Do the Math

https://tlrii.typepad.com/theliscioreport/2015/08/you-do-the-math.html

You’re Gonna Need a Bigger Boat

https://tlrii.typepad.com/

Ladies Don’t Dance on Graves

https://tlrii.typepad.com/theliscioreport/2015/07/ladies-dont-dance-on-graves.html

The Seven Dollar Cantaloupe

https://tlrii.typepad.com/theliscioreport/2015/07/the-seven-dollar-cantaloupe.html

What if Charlie Munger is Right?

https://tlrii.typepad.com/theliscioreport/2015/07/what-if-charlie-munger-is-right.html

The Smell of Dry Powder in the Morning

https://tlrii.typepad.com/theliscioreport/2015/07/-the-smell-of-dry-powder-in-the-morning.html

Rational Exuberance?

https://tlrii.typepad.com/theliscioreport/2015/07/rational-exuberance.html

The Sin of Commission

https://tlrii.typepad.com/theliscioreport/2015/06/the-sin-of-commission.html

The Great Abdication

https://tlrii.typepad.com/theliscioreport/2015/06/something-new-at-the-liscio-report.html