Markets

An ‘Achilles’ heel’ in credit markets means fund managers are bracing for a recession — here’s how they’re adjusting their portfolios

Asset managers are growing wary that a US recession might happen in the next year and are shifting portfolios accordingly. Participants at an annual Moody’s conference cited the Treasury yield-curve inversion and a slowing US economy as key factors. They’re buying gold, gearing up for consolidation, are wary of the […]
An ‘Achilles’ heel’ in credit markets means fund managers are bracing for a recession — here’s how they’re adjusting their portfolios
Markets

Goldman Sachs flagged 5 ‘pockets of risk’ that could spark a recession

Goldman Sachs has flagged five “pockets of risk” that could spark a recession. They are the markets for investment-grade bonds, leveraged loans, subprime auto loans, student loans and commercial real estate. Goldman says they deserve “active monitoring” even though the risk they cause a full downturn is “fairly low.” In […]
Goldman Sachs flagged 5 ‘pockets of risk’ that could spark a recession
Markets

The risky ‘leveraged loan’ market just sunk to a whole new low

85% of all leveraged loans – one of the most-risky types of corporate debt – are now “covenant-lite.” That means they lack traditional requirements for companies to maintain certain financial benchmarks that protect the investors who pay for them. Leveraged loan quality is thus at a record low. Bank of […]
The risky ‘leveraged loan’ market just sunk to a whole new low
Markets

The IMF joins the chorus of worry over the explosion in ‘leveraged loans’

The IMF has joined leading policy makers, major central banks, and global investors in raising the alarm over the buildup of corporate debt. It said default rates are rising, while growth in “leveraged loans” with less protection for investors are now more than double the levels pre-financial crisis. Excessive corporate […]
The IMF joins the chorus of worry over the explosion in ‘leveraged loans’