Morgan Stanley Warns BBB Bond Bust Would Hit Jobs and Growth
- Investment bank draws direct link from credit to real world
- Ten basis-point widening slows growth, hits jobs if sustained
Photographer: George Frey/Bloomberg
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It’s not just denizens of high finance on Wall Street that would lose if the epicenter of U.S. credit trembles, the aftershock would also hit Mom and Pop.
Morgan Stanley strategists modeled the economic fallout wrought by tumbling prices for some of the hottest debt in Corporate America: those rated BBB.