Tag: corporate debt

It May Not Be Too Late To Issue Equity

It May Not Be Too Late To Issue Equity

Corporate debt is at a record $10.5 trillion (chart 1). Yet as a percentage of U.S. corporate equity market values, debt is a small percentage relative to previous years (chart 2). Thank the Fed for boosting equity valuations. Smart, heavily-levered companies used the opportunity presented over the past few weeks to capitalize on inflated equity … Continue reading It May Not Be Too Late To Issue Equity

The Forever Bubble-Blowing Fed

The Forever Bubble-Blowing Fed

The Fed's behavior in recent months has been something out of a horror movie. The low interest rate, expansionary monetary policies introduced by former Fed Chair Bernanke and continued by former Fed Chair Yellen have dramatically accelerated under current Fed Chair Powell. Bernanke dealt in $Billions, Chairman Powell prefers $Trillions. Click any of the charts … Continue reading The Forever Bubble-Blowing Fed