, Columnist
Credit Cracks Are Showing If You Know Where to Look
Anecdotal evidence suggests that corporate borrowers may be due for a reckoning.
A growng spider web of evidence suggests a credit reckoning may be near.
Photographer: Bloomberg Creative Photos/BloombergThis article is for subscribers only.
For years, the naysayers have been warning about the precariousness of the corporate credit market. In an environment where balance sheets have become more and more bloated from excess borrowing stoked by the Federal Reserve’s easy-money policies, shrinking bond yield premiums don’t make sense. At some point, they argue, there will have to be a reckoning.
Could we be nearing that point?