U.S. Recession Would Spur ‘Massive’ Corporate Bond Losses, Eisman Says
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The U.S. corporate debt market will suffer “massive losses” if the world’s biggest economy falls into recession, said Steve Eisman, the Neuberger Berman Group money manager who famously predicted the collapse of subprime mortgages before the 2008 financial crisis.
While the U.S. financial system is strong, “that doesn’t mean we won’t have a recession,” Eisman said in a Bloomberg Television interview in Hong Kong on Thursday. “And in a recession I think there will be massive losses in the bond markets because there’s a lack of liquidity.”