Blog
March 20, 2020
With historically low interest rates before the recent market crash, corporate debt has skyrocketed. According to the Federal Reserve Bank of St. Louis, Nonfinancial Corporate Business Debt has eclipsed $6.5 Trillion. Low interest rates have given rise to “zombie corporations.” A “zombie corporation” only generates enough revenue to service its own debt, and as a result, […]
March 18, 2020
US companies will soon lose their coveted top-quality credit ratings, sending their debt tumbling into the rating category known as “junk.” A cut in rating below investment-grade — marked by the threshold between triple B and double B — indicates a stern warning from the likes of Moody’s and S&P Global for companies to improve […]
March 16, 2020
With the influx in volatility and the arrival of the U.S. stock market’s first Bear Market in more than a decade, those trading on margin may be exposed to forced liquidations and/or margin calls following the market’s recent, aggressive selloff. Broker-dealers require those trading on margin to maintain as collateral a specified percentage of qualified […]
March 15, 2020
H2O Asset Management’s bond funds have lost nearly half their value in a matter of weeks, after the London-based fund manager experienced another day of severe losses on Thursday. H2O, a subsidiary of French bank Natixis that managed about €30bn of assets at the start of the year, has emerged as one of Europe’s highest-profile […]
With the recent drop in oil and gas prices, investors who hold structured products (also known as “structured notes”) tied to that sector may be at risk of significant losses. This may include structured notes tied to the following stocks, among others: Western Midstream Partners, LP (WES); Apache Corporation (APA); Targa Resources Corp. (TRGP); Continental […]