If you think the market is nearing a peak, consider this—leveraged loans other forms of high-yielding credit are seeing a big pickup in 2017. Investment bank have been raking in billions of Dollars in fees on the back of junk credit issuance. Fees are at their highest level since 2013 at $10.5 bn, which compares to just $6.9 bn in 2016. The loosening of credit has led to acquisitions sprees by private equity firms, and the credit boom has extended around the world.
FINSUM: Here is a totally alternative view—what if the market is entering a new golden era? Imagine a renewed bull market blossoming on the back of the Trump presidency that sees prices keep rising just as they did during the Clinton administration. It is not inconceivable. If anything, these credit numbers make it seem like things are revving up.