The leveraged loan market is where companies whose credit is so weak, they can’t access the high-yield bond market to obtain financing. This is the “sub-prime” of the corporate bond market. In 2007-2008 sub-prime mortgages provided liquidity that accelerated the boom in real estate construction, real estate
Read more →Investors own nearly twice as much corporate debt (US$5.3T) today as they did in 2008. It’s not just institutional investors now. With the advent of the ETF the retail investor in search of a “safe, liquid asset” has gone into corporate bonds in a big way. But
Read more →