Zombie Companies on the Rise

Zombie Companies on the Rise Investor demand for leveraged loans and artificially low interest rates have created zombie firms. Picture source: 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. Picture source: Jupiter Asset Management

Why U.S. Productivity Is Lower Than In Previous Business Cycles?

Why U.S. Productivity Is Lower Than Previous Business Cycles? The real yield is the most important measure of financial tightness. But as the real yield is near zero, artificially low interest rates are then associated with unnecessary debt, zombie firms and lower productivity than previous business cycles. Zombie firms cannot invest, innovate and increase productivity. …