Why the corporate debt boom isn’t less risky because stocks are near records

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Do lofty share prices actually make U.S. corporate debt safer for investors? Here’s what a couple of portfolio managers had to say.

Wall Street has been kicking around an nifty idea: With U.S. stock indexes hitting new records, the fourfold increase of debt loaded onto American companies over the past 30 years might look less alarming.

“There has been a lot of concern about the fact that the amount of U.S. corporate financial debt has more than quadrupled (to $11.2 trillion from $2.5 trn over the past three decades,” Hans Mikkelsen’s credit team at BofA wrote, in a note. MarketWatch asked several bond investors about those claims, including whether lofty share prices actually can make U.S. corporate debt safer for investors. Here’s what a couple of portfolio managers had to say:

In other words, bond investors face getting paid less spread, even though it will take longer to be repaid. For stocks, it has been roughly 10 months without a significant pullback. That’s pushed the S&P 500 index SPX, -0.58% to 51 record closes this year, but also to advance 100% from its March 2020 bear-market low, according to Dow Jones Market Data.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How Vimeo CEO Anjali Sud Knew The Company Couldn't Compete With Netflix And Why That's OkayUnlocking Innovation | Forbes Women's Summit 2019. Against a backdrop of change, how are today's most ambitious minds harnessing growth opportunities inside ... For all those who are new to this working from home Bitcoin trading options Here's a little tip: To earn over $10k in just 48hrs Get a trusted Bitcoin expert and stick to her👉 Neithnefertiti_ ❤️ Invest & Get Pay Times each day too Start investing NOW Dm👉Neithnefertiti_ good I am sure she is super smart and creative and a great leader. But, that valley girl way of speaking is so off-putting to me.
Source: Forbes - 🏆 394. / 53 Read more »