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Best Web OpEds    H3'ed 8/10/18

The Big, Dangerous Bubble in Corporate Debt

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' The larger domestic debt market — at around $41 trillion for the bond market alone — reveals more about our nation’s financial health. And right now, the debt market is broadcasting a dangerous message: Investors, desperate for debt instruments that pay high interest, have been overpaying for riskier and riskier obligations. University endowments, pension funds, mutual funds and hedge funds have been pouring money into the bond market with little concern that bonds can be every bit as dangerous to own as stocks. The prices of bonds (and corporate loans) have not accurately reflected the riskiness of the underlying borrower’s credit.  Until recently, investors have been paying higher prices for the debt of riskier companies and not getting properly compensated for that risk.'

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At www.nytimes.com

 

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Susan Lee Schwartz Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

I began teaching in 1963,; Ba and BS in Education -Brooklyn College. I have the equivalent of 2 additional Master's, mainly in Literacy Studies and Graphic Design. I was the only seventh grade teacher of English from 1990 -1999 at East Side (more...)
 

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