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Junk-rated companies have ‘meaningful exposure’ to Fed rate hikes, with one part ‘the root cause' of vulnerability, warns Deutsche Bank

Por: MarketWatch Business November 22, 2022

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“US junk-rated debt is now 50% floating-rate today, an all-time high,” Reid said in the note.  “The rapid growth of the leveraged loan market is the root cause of this vulnerability,” he said, pointing to the chart below. DEUTSCHE BANK RESEARCH Leveraged loans are a form of floating-rate debt that can be considered risky as they’re typically used to finance companies rated below investment-grade, or in junk territory. Private-equity... + full article



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