Do you think regulations today are tight enough to prevent another crisis? The financial system is filled with constant and never-ending risk. When a crisis occurs and the risk is exposed, it’s only a matter of time before another much …
Interesting tid-bit from the article: “The riskiest category of borrowers has never been more leveraged. Companies with junk credit ratings are holding a record low $8 of debt for every $1 of cash, according to S&P.” also this “Ben Breitholtz, …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter Still dreaming in la-la-land. High-grade corporate bonds are “gradually” – the key word in everything the Fed says – and reluctantly coming to grips with the new era: Yields are rising and bond prices are falling. …
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter The Fed will keep tightening until these junk bonds buckle. High-grade corporate bonds have had a hard time. Yields have surged as prices have fallen. The S&P bond index for AA-rated corporate bonds is down 3.2% so far …