WASHINGTON - The head of the top U.S. markets regulator on Monday issued a warning over market risks including rising corporate debt, a U.K. withdrawal from the European Union, and the transition away from a key lending rate.
Jay Clayton, chairman of the Securities and Exchange Commission , told an audience in New York he continued to be concerned over corporate debt growth, which he said had been fostered by a decade of accommodative monetary policies. “We should recognize what prices and price movement in the corporate debt market are telling us. For example, on a total return basis, the upside has become more limited while the downside has not improved.”
Clayton also said U.S. banks should assess their exposure to the London interbank offering rate, known as Libor, ahead of a 2021 deadline to transition away from the lending benchmark rate. He said that the industry had to decide how to actively manage that risk, however.
Nothing to see here. Greater than 3 standard deviation in the short and intermediate cycles should raise some eyebrows for the .1% of the population that didn't sleep through advanced statistics.
trump really did go there
now why would this be? let me think-- oh yeah trump took all regulations off so they could fleece everyone and get away with it
I would think warning over all debt would be prudent... cycle of diminishing returns...
Corporate debt? What about national debt? What about debt capacity? Who cares? What you need complete meltdown! But I doubt Trump's crony billionaires melt. It will be mom & pop! It is low rates driving debt! I see no end to debt spiral!