Macro
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month values ▾
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
| -0.15 | -0.67 | -0.25 | -0.69 | -0.25 | -0.25 | -0.30 | -0.35 | -0.35 | -0.40 | -0.78 | -0.35 |
The finance sector is under significant stress this month, driven by heightened concerns over credit quality and institutional stability. The sharp decline in First Executive Corp’s junk-bond portfolio following Drexel’s collapse has intensified fears around high-yield debt exposure, while Bank of New England’s stock plunge on deteriorating real estate loans underscores regional banking vulnerability to asset market downturns. These events have collectively weighed on sector confidence, amplifying broader unease in credit markets.
How this mood is scored ▾
Drexel Burnham Lambert Group filed for Chapter 11 bankruptcy due to cash flow issues and a $100 million loan default, exacerbated by the collapse of the junk bond market and prior legal penalties. While its broker-dealer subsidiary remains solvent and compliant, the parent company's downfall threatens market stability and firms heavily invested in high-yield bonds. The event intensifies pressure on the junk bond market and may impact share prices of major financial firms like Merrill Lynch and Smith Barney.
Junk bond financier Michael Milken pleaded guilty to six felony counts including conspiracy and mail fraud, agreeing to pay $600 million in fines and penalties. The plea resolves a 15-month legal battle, spares him from maximum sentencing, and mandates cooperation with ongoing insider trading investigations, marking a pivotal moment in the 1980s Wall Street crackdown with lasting implications for securities regulation and market integrity.