“Credit anticipates and equity confirms”

“Credit anticipates and equity confirms” is a financial adage, cited in print since at least March 31, 2009. A person or an institution lends credit in anticipation of profitable events; equity (profit from the credit) is the confirmation of that.
 
“Credit predicts and equity confirms”—a rarely used form of the same saying—was also cited in print on March 31, 2009.
 
     
The Wall Street Journal—MarketBeat
March 31, 2009, 2:12 PM
Bank Stocks and Bank Bonds, Going Separate Ways
By David Gaffen
(...)
Consequently, the credit market continued to discount more worries, compared with the stock market, which rode the gains ever higher. “Our experience has shown that credit anticipates and equity confirms… we suggest equity weakness in the short-term,” wrote Dave Klein, credit derivatives strategist at CDR.
 
Seeker Blog
Hedge fund arbitrage in bank stocks and credit protection
Published March 31, 2009
(...)
A minor-league bank strategist is quoted to the effect that credit predicts and equity confirms, so that the poor performance of bank bonds presages another drop in bank equity.
   
Zero Hedge
TUESDAY, APRIL 28, 2009
Washington Mutual Sues JPMorgan To Recover $4 Billion In Deposits
(...)
CreditTrader
Agree 100%. However, it seems tougher for the PPT to manipulate the CDS market believe it or not…again and again, CDS levels have led equities OR seen the truth. Credit anticipates, equity confirms.
   
Capital Context
Now, Then, When, and Ben
Posted on June 15, 2011 by Tim Backshall
(...)
Credit anticipates and equity confirms is a phrase that many in the markets often use. This has been the case here and portends further weakness in equity and credit markets to come.
 
Icliks Incoming
Credit Anticipates and Equity Confirms
Posted on March 19, 2012 by icliks
Do High Yield Bonds Know Something Stocks Don’t?
Tyler Durden on 03/19/2012
 
Harbor Wealth Management
Credit Anticipates – Equity Confirms
Posted on May 14, 2012 by Jeff M. Burandt, CPA, CFP
In a stimulus motivated and monetary interventionist world, the credit market appears to be the only trustworthy market indicator of the business cycle.
 
Seeking Alpha
If “credit anticipates and equity confirms,” what does the recent sharp widening of high-yield…
Friday, October 26, 2012, 2:39 PM ET
If “credit anticipates and equity confirms,” what does the recent sharp widening of high-yield spreads - their ratio to investment grade spreads rising to a 3-year high - tell us about the future of the stock market?
 
Twitter
Deepti
‏@justinfo4
Amzn bond pricing—> 2015 >2017>>2022 Credit predicts Equity confirms
1:41 PM - 14 Jan 13