In a shocking turn of events, UniCredit Research has suggested that the recent spread tightening in European non-financial bonds may have been overdone due to a decline in corporate credit metrics. This news has left many investors scratching their heads and wondering if they’ve been living under a rock.
According to the report, high borrowing costs and weaker economic activity have contributed to this shocking state of affairs. It’s almost as if companies aren’t doing well when they’re saddled with high debt and an uncertain economic outlook.
In response to this news, fictitious investor John Doe stated, “Well, I can’t believe it. I thought companies borrowing money at high rates and the economy being in the toilet was a surefire way to make money.” He then proceeded to tearfully ask his accountant why he didn’t warn him about this.
At press time, UniCredit Research had no comment on whether they were going to suggest investing in ant farms as a way to diversify your portfolio.
