Great chart via @jessefelder highlighting the extent to which the bond markets are getting seriously divorced from the normal 'fundamentals' of corporate finance: Source: https://twitter.com/jessefelder/status/1151586992033083393?s=20 Corporate debt has expanded at roughly x2 the rate of growth of corporate earnings since the start of this decade. And corporate bond yields are persistently heading South (see: https://trueeconomics.blogspot.com/2019/07/16719-corporate-yields-are-heading.html) and investment for growth is falling (see: https://trueeconomics.blogspot.com/2019/07/7719-investment-for-growth-is-at-record.html). Which continues to put more and more pressure on corporate valuations. As a friend recently remarked, at 2% interest rates, the game will be over. It might be
[email protected] (TrueEconomics) considers the following as important: corporate bonds, Corporate Finance, Corporate investment, corporate valuations, Earnings, EBITDA, Financialisation
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Great chart via @jessefelder highlighting the extent to which the bond markets are getting seriously divorced from the normal 'fundamentals' of corporate finance: