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Stock Alarms Ring Louder as Leveraged Firms Defy Credit Warnings

  • Weakest companies beat stronger as credit cycle signals danger
  • HSBC’s Kettner warns on risky, leveraged stocks as rates rise

Believe it or not, companies with fragile balance sheets are still beating their stronger peers in the stock market, even as the leverage cycle unravels in the world of corporate bonds.

To many, the divergence is looking unsustainable -- giving equity naysayers fresh reason to snub US benchmarks that are already flirting with a bear market