Interesting excerpts: As borrowings have grown, so has the risk. For high-grade companies in 2017, debt outstanding relative to an earnings measure was at its highest level since at least 2010, according to a report from Morgan Stanley.
Global Ratings estimated in February that there were more companies globally carrying debt loads in excess of five times a measure of earnings than in 2007, on the eve of the financial crisis.
Now the Federal Reserve is raising rates and scaling back its balance sheet, which lifts companies’ borrowing costs and makes it harder for highly levered companies to access markets.
Full article: www.bloomberg.com/amp/news/articles/2018-05-04/in-birthplace-of-junk-investors-see-risks-after-decade-of-debt
Submitted May 04, 2018 at 09:13AM by smeznaric https://ift.tt/2jsMQM1
