In this clip from The Macro Show on 5/16/22, Hedgeye CEO Keith McCullough breaks down the deterioration in corporate credit, with spreads continuing to widen as the Fed tightens monetary policy amid #Quad4 economic conditions.
“As earnings conditions continue to deteriorate, credit spreads continue to widen (or break),” McCullough explains.
“We’ve been short High Yield (HYG) and Junk (JNK) the whole way, and shorting more on every single bounce to lower-highs; that’s how you execute on it.”
