Corporate debt the next bubble to pop?

Tim Farrelly | farrelly's Investment Strategy | 12 June 2019

Investment grade debt is not what it used to be. While AA-rated or AAA-rated issuers made up 37% of global investment grade issuers in 1991, today that proportion is just 9%. In 1991, BBB-rated issuers made up just 24% of all investment grade issuers, today they make up 52% of issuers. The universe of investment grade debt has become much riskier. And, while actual default rates on investment grade bonds have been near record lows...