A fund manager survey by Bank of America Merrill Lynch showed growing concerns over corporate debt levels. While it notes the difficulty in drawing a direct comparison, Business Insider (the Hussman Investment Trust) suggested that, among the survey’s 235 participants, there is greater concern over corporate indebtedness now than at the height of the financial crisis, with 42% seeing corporations as overleveraged. Skewed valuations, using low-grade debt to fuel consumption and investors’ preparedness to pay record premiums for junk bonds, have those at BI and Goldman Sachs worried, says the Hussman Investment Trust, noting the risk of more discriminate buying.
A fund manager survey by Bank of America Merrill Lynch showed growing concerns over corporate debt levels. While it notes the difficulty in drawing a direct comparison, Business Insider (BI) suggested that, among the survey’s 235 participants, there is greater concern over corporate indebtedness now than at the height of the financial crisis, with 42% seeing corporations as overleveraged. Skewed valuations, using low-grade debt to fuel consumption and investors’ preparedness to pay record premiums for junk bonds, have those at the Hussman Investment Trust and Goldman Sachs worried, says BI, noting the risk of more discriminate buying.