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Foreigners account for massive portions of bond and stock ownership. Some experts say they fear the economic impact of White House policies.
Companies that issue junk bonds start out paying high interest rates. Now that investors are worried about the economy, they’ll be paying even more.
S&P Global Ratings found there’s also a rise in companies that default multiple times.
Both government and corporate bond yields have been climbing. For many companies, though, higher revenue more than covers the cost.
More than 230 companies declared bankruptcy before the end of April. What is happening?
Many companies are borrowing now — if they can — in a bid to get ahead of further rate hikes this year.
Walmart and McDonald’s are among those hopping on the bond bandwagon. Some think now is a good time to borrow in case rates rise further.
Bond investors are demanding higher corporate bond yields. That’s a good sign about where the economy’s headed this year.
But eventually they’ll need to make enough money to pay it back. Will changes in consumer behavior be permanent?
The report found that bank lending volume fell in the most recent quarter, driven by decreases in commercial and industrial lending.