There Are No More High-Speed Collisions, Only ‘Parking Accidents’

There Are No More High-Speed Collisions, Only ‘Parking Accidents’

There's considerable debate in the market about the extent to which the concentration of leverage in the corporate sector poses a systemic risk. Maybe you noticed. Post-crisis monetary policy has, among other things, incentivized corporate debt issuance. Borrowing costs are artificially suppressed and thanks to ultra-low yields across safe haven government bonds, appetite for riskier debt (i.e., demand for anything that offers any semblance of yield) has increased. Of course with voracious dema
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2 thoughts on “There Are No More High-Speed Collisions, Only ‘Parking Accidents’

  1. Households and fin might have de-leveraged, but most of that is them ‘re-routing’ their cash to PE and VC. It’s the same net effect, but it ‘looks’ like less leverage in the overall market.

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