An appetite for risky assets that has sent small-cap and emerging market stocks and junk bonds flying since March now is getting more scrutiny from a market heavyweight. Greg Peters, head of credit strategy at Morgan Stanley, (NYSE: MS) is the latest to question the rallying assets of debt-laden companies. In an interview with Bloomberg, he calls the market incredibly dangerous, noting that average debt relative to earnings among high-yield offerings is at an 11-year high. And the strong rally is happening despite rising default rates. How long can any rally last when it’s being driven by the worst assets?
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