Bill O’Neill, Senior Portfolio Manager at Income Research, shared his thoughts with Bloomberg on the record-pace borrowing taking place in the bond market. Buying bonds is becoming riskier, as companies are boosting their debt levels as their earnings fall, leaving them with fewer resources to pay interest on their growing debt burdens. O’Neill noted how “Fed support may ease a short-term liquidity crunch but it doesn’t cure credit risk.” The article also noted how Income Research is looking at bonds sold by energy, finance, and property companies that might not survive the onslaught.
Bloomberg: A Deluge of Debt
April 30, 2020
Original article by Caleb Mutua and Jack Pitcher