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Straw in Wind? Near-Junk Ratings Dominate US Corporate Bonds

The scary thing is that, in the estimation of Grant’s Interest Rate Observer, business debt as a percent of GDP tops 72%, which is more than the peak of the last economic up-cycle, 68.8% in 2017’s first quarter. 

As financial pundit William D. Cohan recently wrote, vis-a-vis the corporate debt situation: “It’s been quite a party. Now comes the hangover.”

DYI:  What more can one say?  One lite economic breeze will send this house of cards falling cascading into a major downturn dropping high yield, junk bonds and stocks down to a significant degree.  When is the question?  No one knows for sure but we can say the U.S. economy is on borrowed time.  It appears that Europe borrowed time has run out and is now in recession.  With that in mind the economy will go negative soon most likely this year.

DYI