MFS-Chefstratege James Swanson
Swanson on Leveraged Loans
Chief Investment Strategist James Swanson: 43 years with industry, 32 years with MFS. Foto: MFS
There is a saying among Wall Street veterans that goes way back that if you give people cheap money for a long time, they'll use it, they'll abuse it. And we saw this during the last business cycle. Many of us remember 2007 people overloaded the boat with mortgage debt. Is that happening now?
It's hard to say because some of this is hidden but we've detected recently in doing some research, a sudden rise in corporate borrowings of floating rate debt. Now remember, the US Federal Reserve Bank is raising short term rates and they're rising pretty much around the world and these loans are tied to short term rates. Unfortunately, this is up to $2...
Über den Autor:
Weitere Artikel aus der Rubrik