ARDC - Debt Bulge Raises Stakes For U.S. Equity Investors
By Frank Caruso and John Fogarty
US corporate debt has surged over the past decade. As rates begin to rise from historic lows, focusing on quality companies with healthy balance sheets can help equity investors avoid danger zones.
Ultra-low interest rates have fueled financial markets for years. Many companies have taken advantage of the comfortable financing conditions to increase borrowing. But as conditions change, higher rates could force investors to confront some nasty side effects of the easy-money policy.
US outstanding nonfinancial bonds have risen by 63% to $6.3 trillion since 2011 (Display).