U.S. Zombie Companies and Fed Ended QE
U.S. Zombie Companies and Fed Ended QE Since the Fed ended QE, U.S. zombie companies have underperformered the market. Image: Arbor Research & Trading LLC
U.S. Zombie Companies and Fed Ended QE Since the Fed ended QE, U.S. zombie companies have underperformered the market. Image: Arbor Research & Trading LLC
Zombie Companies in Europe After years of unprecedentedly easy monetary policy, zombie companies in Europe are back on the rise. Image: BofA Merrill Lynch Global Research
Zombie Companies – U.S. Zombie Stocks vs. S&P 500 Since 1990, an equal-weighted index of U.S. zombie stocks has not significantly underperformed the S&P 500. Image: FactorResearch
Zombie Companies – U.S. Zombie Stocks by Sectors This chart shows the rise of zombie stocks in the health care and technology sectors after 2000. Image: FactorResearch
Falling Real Yields Allow Zombie Companies to Live On The cost of extended monetary easing: the percentage of zombie companies continues to rise as U.S. 10-year real yields fall. Image: Arbor Research & Trading LLC
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 Artificially low interest rates and investor demand for leveraged loans have created zombie firms. Image: Jupiter Asset Management
% of Zombie Firms Among OECD Companies The share of zombie firms in OECD countries is increasing, as a result of governments’ response to the coronavirus crisis. Image: BofA Global Research
Zombies Walking Amongst the Smallest Companies Interesting chart showing the rise of zombie companies and their market capitalization. Image: Arbor Research & Trading LLC
Central Bank Target Rates Who will be the next central bank to cut interest rates? Central banks have cut -3,147 basis points over the past year. Image: Arbor Research & Trading LLC
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. …