Goldman Says Credit Rang Warning Bell That Stocks May Be Hearing
- U.S. investment grade has trailed stocks over the past month
- Debt underperformance mimics pattern in mid-January: Marshall
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While the losses landing on technology stocks over the last few days feel sudden, they weren’t completely without warning.
The signs were showing in credit markets, specifically, where investment-grade corporate bonds have been behaving in a way that portended the last big equity shakeup, in February. Goldman Sachs strategists noted that U.S. investment-grade debt has trailed equities for a month and suffered a larger dislocation Thursday that rang alarm bells.