A record portion of the investment-grade bond market sits just one step above junk status, and any economic turbulence could create big problems.
A record portion of the investment-grade bond market is sitting just one step above junk status.
Experts at the recent Milken Institute Global Conference broke down their fears around the situation, which are hitting a fever pitch.If you see a major corporate acquisition in the headlines today, there's a good chance it was financed by debt. But this seemingly unlimited spigot of capital has led to some potentially negative consequences. And the chorus of experts across Wall Street stressing caution has grown ever-louder.section of the corporate bond market. While the debt held by those firms is considered relatively safe and at low risk of default, the group's overall quality has declined over time.
The potential fallout could be swift and punishing. Bonds clinging to their investment-grade status could see their ratings downgraded into junk territory. That, in turn, would make it harder for them to pay back their loans, and possibly even default. Once that happens, bankruptcy might not be too far off..
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Uber falls more than 7% in disappointing Wall Street debutShares of Uber fell more than 7% on its first day of trading, marking a rocky Wall Street debut for a company that endured plenty of bumps on its long road to going public.
Consulte Mais informação »
Here are the biggest analyst calls of the day: Ralph Lauren, Intel, Hostess Brands & moreHere are the biggest calls on Wall Street on Thursday
Consulte Mais informação »
Here are the biggest analyst calls of the day: Pinterest, US Steel, Mylan & moreHere are the biggest calls on Wall Street on Wednesday
Consulte Mais informação »
Chevron, the loser in the Anadarko buyout battle, is actually a winner on Wall StreetChevron walks away from its deal to buy Anadarko with a $1 billion breakup fee and its 'hard-won' reputation for capital discipline intact.
Consulte Mais informação »
POLITICO Playbook: Wall Street takes stock of the tariffs, and Pompeo trades Moscow for Brussels visitWall Street is having a bit of a freakout over President Donald Trump's trade war. More in Playbook:
Consulte Mais informação »
Trade Talks Take Center Stage As More Volatile Action Expected On Wall StreetThe trade talks are happening right in front of investors’ eyes this week, and that’s one reason for all the volatility. Thin, low-volume trading is possible today as investors await tidings from Washington.
Consulte Mais informação »
China's tit-for-tat could wipe out Wall Street gains for the yearChina is targeting sectors and industries located in Trump-voting states 'in order to impose as much economic damage on the people that support Donald Trump as they can,' said one economist.
Consulte Mais informação »
Goldman beats path to new Wall St hunting groundThe firm is courting an investment adviser in what would be its largest deal since the financial crisis. United Capital’s $23 bln in assets are a drop in the bucket for Goldman Sachs, but bring the kind of predictable earnings that boss David Solomon wants. He’s not the only one.
Consulte Mais informação »
Trade-sensitive stocks on ropes as uncertainty weighsA week of worsening fears on Wall Street leading up to Washington's increas...
Consulte Mais informação »
Catch me if you can: Occidental jet trail sets off more speculation on Wall StreetOccidental's bid for Anadarko largely boils down to the latter's oil and gas assets in the Permian Basin, where Anadarko and Shell share acreage.
Consulte Mais informação »