US companies are on a borrowing binge, and debt markets don’t seem the slightest bit concerned. Companies issued a collective $2 trillion of public debt in each of the last two years, up from $1.5 trillion in 2022 and 2023. Yet credit spreads — the extra yield companies pay relative to the government — are at historical lows for both high-grade and junk bonds, a sign the market is confident that companies can pay back their debts.
www.bloomberg.com
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The Credit Market’s Early Warning System Is Weakening
