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Rather than this 10 trillion number I’d prefer to see how much corporate debt has some level of default risk. Presumably some fraction of this is issued by soli
by mrfusion 7y ago
Rather than this 10 trillion number I’d prefer to see how much corporate debt has some level of default risk. Presumably some fraction of this is issued by solid companies with Enough cash reserves or future Income to cover the debt.
- riffraff 7y agoI see the above comment downvoted, but it seems correct to me. For example, Assicurazioni Generali[0], just emitted a new 10y bond for €1B. That would increase the total corporate debt of the world, but Generali has a higher credit rating than most governments, so why is that significant? [0] https://en.wikipedia.org/wiki/Assicurazioni_Generali https://en.wikipedia.org/wiki/Assicurazioni_Generali
- take_a_breath 7y agoIt’s not significant because $1 billion is 0.01% of the total. Also, this article is about US corporate debt specifically. What is significant is this quote: “sending total U.S. corporate debt to nearly $10 trillion, or a record 47 percent of the overall economy.”