OECD warns of corp bond fire sale
A slump in revenue growth during an economic downturn could trigger a change in investors’ risk appetite and a “widespread” sell-off of corporate bonds, the Organisation for Economic Cooperation and Development warned on Thursday.
The strong appetite for low-rated debt by investors searching for higher yields has created a specific vulnerability because these loans depend on a continuous stream of revenue to meet the coupon payments.In its keynote annual economic outlook, the OECD said that corporate debt in the US appears ...
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