Leverage Increases at Lowest-Graded Companies, Zombie Firms Increase

Posted: Nov 08, 2017 12:01 AM
Leverage is steadily increasing at the lowest-rated investment-grade companies. Zombie firms are on the rise and so is default risk.

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Zombie firms continue to rise. Perpetual refinancing and low rates create stagnation


Saudi Arabia plans to replenish its foreign reserves by confiscating tens of billions in "illegal" personal wealth


This is the kind of thing that often marks tops. Those clamoring for bitcoin futures, ETFs, and options may wish to consider. Nah. It's different this time.

A portion of the yield curve may invert when the Fed hikes in December. Spreads between some durations are around 10 basis points.


LISA! Failing Italian rail companies are sound investments for the ECB!!!!! ...... said no one ever... https://twitter.com/lisaabramowicz1/status/927888182598864901


Demand for commercial & industrial loans is weakening even as lending standards loosen. Raises questions about how strong growth really is


About that strong growth: I Expect New Record Low Long Bond Yield