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 .
Hidden risks appear to be growing in US corporate bonds, a bellwether for the health of the economy. As in the late 1990s and 2007, the market is signalling 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 means CFOs have been borrowing as much as possible without pushing their credit ratings into junk, meaning more bonds face being cut from investment grade in a downturn.