Wall Street is Sleepwalking Past 3 Looming Market Risks

The report flags three "areas of vulnerability": weakening credit quality; external debt-related issues in emerging markets and low-income countries; and dollar liquidity troubles for non-US banks."Increasingly, less creditworthy companies are able to borrow in financial markets," Adrian said. "Global issuance of so-called leveraged loans — made to riskier companies and those with high debt loads — rose to a record $788 billion last year. There are similar trends in corporate bond markets, where lower rated US and euro-area companies account for a growing proportion of bonds."

 

http://www.businessinsider.com/wall-street-ignoring-market-risks-like-leveraged-loan-growth-2018-5

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