19 min ago
Spreads on Magnificent Seven bonds tighten in move that may be a positive signal for stocks
Spreads on bonds issued by the so-called Magnificent Seven group of big tech names have tightened over the last week in a move that might bode well for the beaten-down stocks.
One caveat: Only six of the group have outstanding bonds. Tesla Inc. has issued convertible bonds in the past, but they have since been converted to equity.
The following chart from data solutions provider BondCliQ Media Services shows no signs of the carnage that set in early last week amid worries over the recession outlook and the violent unwind of the Japanese-yen carry trade.