Last year we saw twice as many bond downgrades to upgrades. 452 bonds were upgraded, while 937 were downgraded.

That’s the story of today’s chart. It shows the bond upgrade-to-downgrade ratio going back to 2007…


As you can see, 2019 was the worst year for the ratio since 2009 – during the global financial crisis.

This is just another sign that the fundamentals are deteriorating… even as stock-market valuations reach new heights.

– Houston Molnar

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