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The Tech Wreck Rally With Samantha LaDuc

Lead-Lag Live

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Is Volatility Suspension Credit Spread Manipulation?

Sally Kohn: volatility suppression is ultimately credit spread manipulation. The link there is that the VIX, when it spikes, tends to result in high yield really selling off differential between junk debt and triple A widens because default risk gets priced in. She says at some point this year, there's going to be an opportunity to get junk debt at like 10, 15% yield after a real spread blowout. But right now, we are being paid to wait, aren't we? 100%.

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