Companies’ Towering Debt Might Not Bring Widespread Defaults
Junk bonds do better when interest rates are low, like now, Nataxis finds.
Tag: Junk Bonds
Market Moves
Beware of Corporate Debt, Even Non-Junk, Says David Einhorn
Prophetic on Lehman in ’08, hedge fund operator claims rating agencies go too easy on debt-laden companies.
Big BBB Downgrade Damage Ahead? Maybe Not
Why the anxiety about this overstuffed bond category may be overdone.
Market Moves
Leveraged Loan Boom Is a Threat, Says BofA Chief
Bank lending to heavily indebted companies will blow up once the economy goes south, Brian Moynihan warns.
Straw in Wind? Near-Junk Ratings Dominate US Corporate Bonds
Baa–rated issues reach record, although defaults at this stage are not worrisome, Moody’s data indicates.
What Junk Bond Spreads Tell Us: Economy OK for Now
A wide gap between high-yield and 10-year Treasury signals a pending recession, says Natixis’ Lavorgna.
Moody’s: Higher Treasury Yields Expected as Equities Surge
The firm points to stock rally and lower junk yields as key to New Year market sentiment.