CLO Selloff Flashes Warning Sign to Junk Bond Market

Stocks rose to records in October. One corner of the debt market had a rougher time. Some securities in the $680 billion market for collateralized loan obligations, or CLOs, lost about 5% in October, reflecting worries about rising risk in the complex investment vehicles. The declines were a rare stumble for the CLO market, which has grown by about $350 billion in the past three years, according to data from S&P Global Market Intelligence, fueled by demand from government pensions, hedge funds and other yield-hungry investors.

www.wsj.com/articles/clo-selloff-flashes-warning-sign-to-junk-bond-market-11573477203?mod=cxrecs_join#cxrecs_s

Farmers in Crisis Turn to High-Interest Loans as Banks Pull Back

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Financial stress is mounting in the Farm Belt, pushing more growers to take on high-interest loans outside traditional banks to stay in business…..Farm debt is projected to hit a record $416 billion this year, according to the U.S. Department of Agriculture, up nearly 40% since 2012. Defaults and bankruptcies are rising as well, crimping the ability of cash-strapped farmers to secure funding for seed, fertilizer and fuel.

www.wsj.com/articles/farmers-in-crisis-turn-to-high-interest-loans-as-banks-pull-back-11573381801

 

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