ADADAmid the avalanche of debt, the sharp growth in lower-quality corporate bonds, just one notch above junk, represents a special concern. Investors hold nearly $4 trillion in these bonds, including $2.5 trillion from U.S. companies, according to the credit rating agency Standard & Poor’s. ADCutting interest rates is the standard answer to a troubled economy. AD“We’re more vulnerable to that now with this amount of corporate debt,” said Kaplan, a former Goldman Sachs banker. At $1.5 trillion, they now amount to about one-sixth of all corporate bonds on the market, according to the Fed.

Source: Washington Post November 29, 2019 17:26 UTC