'Cries of pain' at smaller firms are being drowned by exuberance elsewhere in the market - but rising defaults point to a recession coming, SocGen says

• Smaller firms are struggling under the weight of interest rates and rising defaults are a recessionary signal. 
• According to Societe Generale, credit conditions at small companies are in line with what's seen in a downturn. 
• "The notion that we are at the start of a new economic cycle seems preposterous to me," Albert Edwards wrote. 

Big Tech and the "Magnificent Seven" stocks powering big gains for the S&P 500 this year may be getting all the attention from investors, but there's another, arguably more important, corner of the market that's quietly struggling—and its troubles are a sign a recession is probably looming.