Geopolitics Alpha

Credit markets have entered uncharted territory as the riskiest junk bonds send a warning to investors

Published . Updated .

Credit markets are sending unusually mixed messages to investors right now, and it’s making some people nervous.

Directly affected

  • PPLI People

    Named in this report.

Indirectly affected

  • LMT Lockheed Martin

    Defense contractors get more work when conflict spending rises

  • RTX RTX

    Defense contractors get more work when conflict spending rises

  • NOC Northrop Grumman

    Defense contractors get more work when conflict spending rises

  • GD General Dynamics

    Defense contractors get more work when conflict spending rises

  • ITA iShares U.S. Aerospace & Defense

    A fund of aerospace and defense companies

  • BA Boeing

    Defense and aerospace orders move with conflict spending

  • LHX L3Harris

    Defense contractors get more work when conflict spending rises

  • HII Huntington Ingalls

    Shipyards benefit when naval spending rises

Price reaction, T-5 to T+3

TickerT-5T-3T-1T0T+1T+2T+3
PPLI———————
LMT———————
RTX———————
NOC———————
GD———————
ITA———————
BA———————
LHX———————
HII———————

Credit markets are sending unusually mixed messages to investors right now, and it’s making some people nervous.

Source: MarketWatch

How solid the defense case looks

12 out of 100

“Credit markets have entered uncharted territory as the riskiest junk bonds send a warning to investors” scores 12 out of 100. The score uses 1 sources.