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BBB Corporate Bonds – How Many Are Close to Default?

In 2008, in the aftermath of the financial crisis, the Federal Reserve began its “quantitative easing” program, a determined effort to lift the economy by lowering the cost of borrowing. It bought up trillions of dollars in Treasury and other debt securities, effectively reducing long-term interest rates. Debt issuance exploded. In the last decade, the amount of corporate […]

Market Sees Problems Ahead for General Electric – GE

General Electric Co. shares plummeted after two Wall Street analysts sounded more alarm bells around the company’s liquidity, and a report said former General Electric employees were being questioned by federal investigators about its troubled insurance business. Deutsche Bank slashed its GE price target to $7 a share on Friday, saying revenue for the conglomerate’s […]

GE’S Free Fall May Be A Sign of a Broad Corporate Debt Problem

Over the past decade, the Fed has kept interest rates at historically low levels.  These low interest rates have incentivized U.S. Companies to borrow, adding significant debt to their balance sheets.  As reported by the Wall Street Journal, the gap between investment-grade U.S. corporate bonds and U.S. Treasuries has reached its highest level in two years.  […]