Hedgeye Podcasts Hedgeye Investing Summit Spring 2025 | Danielle DiMartino Booth, CEO & Chief Strategist of QI Research
Apr 20, 2025
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Hidden Credit Market Risks
- Corporate bankruptcies are up about 20% year over year, signaling recession stress in the economy.
- High yield spreads appear understated due to ETF liquidity dynamics, hiding true credit market risk.
Markets Price Fed Cuts Early
- Dollar weakness signals markets expect Fed rate cuts despite Powell's hawkish stance.
- Inflation is decelerating, but the lag in unemployment rise complicates Fed policy.
Rising Bankruptcy Cycle Signals Stress
- Household bankruptcies are rising, following corporate distress, indicating widespread economic deterioration.
- Banks are masking loan losses with euphemisms as the credit cycle worsens.