U.S. and Euro Area Composition of Corporate Credit

U.S. and Euro Area Composition of Corporate Credit Great chart showing that the U.S. is a market-based financial system, while the Euro Area is a bank-based system with 80% of bank loans. Image: Deutsche Bank Global Research

U.S. Corporate Bond Ownership

U.S. Corporate Bond Ownership More than 25% of U.S. corporate bonds are held by insurance companies. Many investment grade investors are not allowed to hold junk-rated bonds. Any drop in the credit ratings could amplify the next recession. Image: NBF Economics and Strategy

U.S. Consumer vs. Corporate Debt

U.S. Consumer vs. Corporate Debt This chart puts interest rates on non-prime consumer credit accounts into perspective vs. CCC corporate bonds. Image: Goldman Sachs Global Investment Research

Negative Yielding European Corporate Bonds

Negative Yielding European Corporate Bonds Now, €1.1 trillion of European corporate bonds yield are below zero: exactly half of the European high-grade credit market. Image: BofA Merrill Lynch

Corporate Leverage in the U.S.

Corporate Leverage in the U.S. U.S. corporate debt is high. This chart shows that U.S. corporate leverage is close to its previous peak on a net debt to EBITDA. You may also like “U.S. Leveraged Loan Index Rating Breakdown: 2008 vs. 2019.” Image: Credit Suisse Research

The U.S. Corporate Bond Debt Rated ‘BBB’ Exceeds $3 trillion

The U.S. Corporate Bond Debt Rated ‘BBB’ Exceeds $3 trillion The U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. That’s 53% of investment-grade bonds in the United States. Any drop in the credit ratings could amplify the next recession: many investment grade investors own BBB-rated bonds, but are not allowed to hold junk-rated bonds.…

Leveraged loans pose risks as corporate debt increases

Leveraged loans pose risks as corporate debt increases A leveraged loan is debt issued by a company that has below investment grade credit ratings and a considerable amount of debt with high interest rates. In this video, Brian Cheung of Yahoo Finance, explains why leveraged loans pose risks as corporate debt increases.