Percentage Of US Companies With A Junk Rating

One of the most striking features of the current economic environment is the number of charts and graphs of statistical, price or other data that depict cliff-like drops or moon-shot-like jumps. Today’s example, highlighted by Jan-Martin Feddersen, publisher of the immobilienblasen blog, can be found in a post entitled “Number Of The Day: ‘Percentage Of US Companies With A Junk Rating.”

This at the start of a deep and long recession…… After the events of the last 3 month it is valid to wonder how much of this debt will get bailed out ( GM….) or will end up without much disclosure on the Fed´s balance sheet……I wonder how many companies are now on the brink of bankruptcy just because they decided to make big debt financed stock buybacks or megalomaniac takeovers & buyouts……

WSJ Junk-Bond Market Has Closed the Door
Yields Upward of 20% Make It Too Pricey for Borrowers; Zero Deals Made It in November

About 50% of U.S. companies have below-investment-grade credit ratings, making the $750 billion junk-bond market a vital source of financing for car makers, airlines, retailers, utilities, restaurant chains and media companies

The next chart is making things even scarier. Within the “junk” label, the remaining “quality” has deteriorating fast and furious especially over the past few years.

Posted in Categories: Contributor, Economy, External Research, USA.

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