Economics
How Bond Markets Can Predict Moves in Stocks
- Liquid, high-yield bonds foretell equity moves: Berkeley study
- Professor says shares react more slowly to complex financials
What Investors Are Learning From 2Q Earnings
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The “smart” money may deserve its reputation after all.
High-yield bonds moving with the ebbs and flows of U.S. earnings announcements tend to predict stock returns for a slew of issuers -- particularly firms with a modest level of institutional equity ownership. So stock investors seeking an informational edge should keep their eyes on junk-bond prices on the heels of earnings reports.