from Zero Hedge
We find it surprising how, having covered the unprecedented growth in US corporate debt over the past few years, which has more than doubled from $2 trillion at around the time of the financial crisis to approximately $6 trillion currently…
[…] … resulting in a debt/ETBIDA ratio that has never been higher…
[…] … some are still amazed by what is taking place on corporate America’s balance sheets.
Overnight, one person warning how all this will end is TCW Group’s Tad Rivelle, who is the latest to observe that “corporate leverage, which has exceeded levels reached before the 2008 financial crisis, is a sign that investors should start preparing for the end of the credit cycle.“
Rivelle says that “the credit-fuelled expansion inevitably comes to a bad end,” Rivelle, chief investment officer for fixed income at TCW, said in a note sent to investors Tuesday. “We’ve lived this story before.”