Hidden risks appear to be growing in US corporate bonds , a bellwether for the rest of the economy . As in the late 1990s and 2007 , the market is showing that lenders have been taking excessive risks , with businesses paying interest rates that are barely above those on the safest government bonds to borrow . This is a handy reminder that lenders have thrown... Investor appetite for riskier bets . CFOs have been lending as much as possible without pushing their credit ratings into junk , meaning more would face being cut from investment grade in a downturn .
Hidden risks appear to be growing in US corporate bonds , a bellwether for the rest of the economy . As in the late 1990s and 2007 , the market is showing that lenders have been taking excessive risks , with businesses paying interest rates that are barely above those on the safest government bonds to borrow . Investor appetite for riskier bets . CFOs have been lending as much as possible without pushing their credit ratings into junk , meaning more would face being cut from investment grade in a downturn .