Alarm bells are ringing unheeded in a world yearning for optimism

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High yield bonds updates

The alarm bells are ringing, but is it any wonder that nobody hears them? The world yearns for optimism. Witness the joy over a teenage Brit winning the US Open or the interest in the Met Gala, which landed on the front pages of major newspapers — including this one.

Even in financial markets, the gauge that much of the US public looks to as a barometer of our country’s economic wellbeing — the $51tn US stock market — has set record after record. And yet there is good reason to be anxious.

If a growing chorus of analysts on Wall Street is to be believed — and there is a compelling argument that they should be — the risks in one corner of financial markets are beginning to mount.

Investors have waved through deal after risky deal this year as they look for places to park their cash. The lending has been mammoth, swelling…

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