TCW’s Rivelle Sees Day of Reckoning as Corporate Leverage Soars
- Credit issuance topped $1 trillion for five years in a row
- ‘We’ve lived this story before,’ Rivelle says in note
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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, according to TCW Group Inc.’s Tad Rivelle.
“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.”