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.

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

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.



Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.