U.S. High Yield Bonds and Leverage Loans
U.S. High Yield Bonds and Leverage Loans The pace of downgrades has accelerated in the U.S. leveraged loan market, despite declining interest rates. Image: Goldman Sachs Global Investment Research
Search Results for: leverage
S&P 500 Median Stock Net Leverage
S&P 500 Median Stock Net Leverage Net leverage of the median S&P 500 companies reached new highs, above 1.8. Image: Goldman Sachs Global Investment Research
Hedge Fund Gross and Net Leverage
Hedge Fund Gross and Net Leverage Despite the trade war, hedge fund leverage remains high, compared to the average level of the last five years (aggregated data from Goldman Sachs Prime Services, as of August 19, 2019; should not be relied upon as a comprehensive view of the market). Image: Goldman Sachs Global Investment Research
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
U.S. Leveraged Loan Index Rating Breakdown: 2008 vs. 2019
U.S. Leveraged Loan Index Rating Breakdown: 2008 vs. 2019 Since 2008, this chart shows that U.S. leveraged loans are getting lower ratings. Any drop in the credit ratings could also amplify the next recession. Image: Standard & Poor’s Leveraged Commentary & Data, UBS
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.
Zombie Companies on the Rise
Zombie Companies on the Rise Investor demand for leveraged loans and artificially low interest rates have created zombie firms. Image: Quick Factset
Increased Number of Zombie Companies
Increased Number of Zombie Companies Artificially low interest rates and investor demand for leveraged loans have created zombie firms. Image: Jupiter Asset Management
Stock Market Forecasting Models vs. US Stock Market
Stock Market Forecasting Models vs. US Stock Market – Growth of $1,000 As an example, the chart shows the growth of $1,000 since 1970, between the stock market forecasting models and the US stock market (compound return before taxes, fees and transactions costs – unleveraged, simulated long & short trades – quarterly basis & logarithmic…
Why Potential GDP Has Been Cut in Half Since the 1950’s?
Why Potential GDP Has Been Cut in Half Since the 1950’s? The main reason is a lower productivity than previous business cycles, due to: – lower population growth – the service sector is growing faster than the industry sector – lower quality jobs in the service sector have a lower productivity than in the industrial…
