The reckless risk-taking and levering in the corporate sector during the past 4 years of QE mania has been ‘ludicrous mode’.
As noted here previously in Ichan warns of markets on a ‘treacherous path’ and Fed and long-always funds pushing capital over a cliff, capital losses have been baked into irrationally high asset prices and indiscriminate buying. It was always just a matter of time for the tower of terror to unravel. Funds and managers in the space have begun to go bust and the forced selling is spreading to other assets as the need to raise cash via liquidation spreads. Two words: not contained.