Stansberry Investor Hour host Porter Stansberry interviewed world renowned bond analyst Martin Fridson about the coming defaults in the bond and treasury markets. Fridson has been dubbed as the “Dean of high yield debt” and is the chief investment officer at money management firm Lehmann Livian Fridson Advisors in New York. He’s also the author of the bestselling book HOW TO BE A BILLIONAIRE: Proven Strategies from the Titans of Wealth.
Fridson has been warning investors that the next credit default cycle will be the biggest one the world has ever seen. He’s predicting over a trillion dollars in corporate bond defaults globally, which will kick off the ultimate U.S. bear market.
“The basis for predicting this is what’s happened in past cycles,” Fridson said. “You can point to periods where the nature of the financing was worrisome. In the late 90’s, early stage telecom companies defaulted in massive numbers. These companies didn’t have any revenues or cash flows. We’re seeing something similar now.”
Fridson predicts 2019 to see the beginning of this cycle and 2020 to be a year full of turmoil as a result. As of right now, Fridson doesn’t see any indications the markets will get shocked or spooked given the leading indicators he looks at.
“It doesn’t look like we’re on the brink of a recession right now,” Fridson noted.
Fridson is a debt market visionary whose 40-plus year career places him as the leading expert in the circle of bonds, treasuries, notes, and debt. His historical research and data analyses have predicted many of the world’s credit crises.
In the episode, Fridson further explains the baffling phenomenon of junk bonds being priced higher than safer corporate bonds in today’s markets.
“The only time we’ve seen this before was right up to the 2008-2009 global financial crisis,” Fridson said.
The conversation ended with Fridson saying covenant protection – a measure of actual security people have in their bond purchases – has been trending down since 2011.
Listen to the episode with Martin Fridson at https://www.youtube.com/watch?v=kfSsOllhdPc
About Stansberry Investor Hour
From business, investing and politics to entertainment and social issues, the Stansberry Investor Hour with Porter Stansberry and Buck Sexton offers candid, intelligent, and entertaining takes on today’s most important headlines… inviting a variety of insightful guests to join the conversation. It is becoming a required stop for politicians, the media, and financial and economic experts. The show has been host to a wide variety of prominent names from all sides of the spectrum and has a global audience in more than 100 countries. It is ranked highly in the Investing section of iTunes. New episodes release every week.
Stansberry Investor Hour podcasts can be accessed at http://www.investorhour.com
The latest episode with Martin Fridson can be heard at https://www.youtube.com/watch?v=kfSsOllhdPc
About Stansberry Research
Stansberry Investor Hour is a part of Stansberry Research – a subscription-based publisher of financial information and software, serving millions of investors around the world.
To learn more about Stansberry Research, visit www.stansberryresearch.com
About Porter Stansberry
Porter Stansberry founded Stansberry Research in 1999 with the firm’s flagship newsletter, Stansberry’s Investment Advisory.
Prior to launching Stansberry Research, Porter was the first American editor of the Fleet Street Letter, the world’s oldest English-language financial newsletter.
Today, Porter is well-known for doing some of the most important – and often controversial – work in the financial advisory business. Since he launched Stansberry’s Investment Advisory, his string of accurate forecasts has made his advisory one of the most widely read in the world and has helped his readers both avoid catastrophe and make incredible gains.
For example, his dead-on prediction of the mortgage meltdown got the attention of Barron’s, who said Porter’s work was “remarkably prescient… Nothing, as far as we can see, has happened to contradict his dire prophecy…”
At Stansberry Research, Porter oversees more than a dozen of the best editors and analysts in the business, who do an exhaustive amount of real-world, independent research. Together, his group has visited hundreds of publicly traded companies to bring Stansberry Research subscribers the safest, most profitable investment ideas in the world, no matter what’s happening in the markets.
About Buck Sexton
Buck Sexton is host of the nationally syndicated talk radio program, Buck Sexton with America Now, heard on over 100 stations across the country.
Buck is a political commentator and national security analyst who appears frequently on the Fox News Channel and CNN. Buck has also had the distinction of being a guest host for Rush Limbaugh, Glenn Beck and Sean Hannity on their nationally syndicated radio shows, and is the only talent to have hosted all three shows.
Buck formerly served as a CIA officer in the Counterterrorism Center (CTC) and the Office of Iraq Analysis. He completed tours of duty as an intelligence officer in Iraq and Afghanistan, as well as other hotspots around the globe, and led intelligence briefings for senior U.S. officials including the president. Buck also served in the New York Police Department (NYPD) Intelligence Division working on counterterrorism issues.
A graduate of Amherst College, Buck was born and raised in New York City, where he currently resides.