Corporate Debt Is Reaching Record Levels
“U.S. corporate debt has climbed to roughly 46% of GDP, the highest level on record. Observers worry that highly leveraged companies could pose a threat to the global economy, especially if growth slows and rates continue to rise.”
Global Manufacturing #PMI down to 27-month low of 51.5 in December, from 52.0 in November. Growth eased in emerging markets and developed nations + intermediate and investment goods producers t.co/ANDt8AoT14 pic.twitter.com/dPUtzp6wkD
— IHS Markit PMI™ (@IHSMarkitPMI) January 2, 2019
Wolf Richter Video: “How the Corporate Debt Bubble Will Crush Stocks”
“Corporate debt, after years of encouragement by the Fed via artificially low interest rates, has reached historic levels. Now even the Fed is worried about its handiwork. Many of these companies will default over the next few years. This is a cleansing process that is part of the business cycle – only this time, it’s so much larger ”