The Fed Keeps Zombies Alive — Profit Off Their Coming Demise
A zombie company is one that should be dead but somehow manages to survive — even when sales don’t cover the costs of debt.
Posted by Michael Carr | Jul 10, 2020 | Chart of the Day
A zombie company is one that should be dead but somehow manages to survive — even when sales don’t cover the costs of debt.
Posted by Michael Carr | Jul 9, 2020 | Chart of the Day
The Federal Reserve is providing money to bond markets. It’s buying billions of dollars of corporate bonds. And that’s hiding inflation.
Posted by Michael Carr | Jul 8, 2020 | Chart of the Day
Heavy borrowing isn’t unprecedented. Borrowing with limited ability to repay the debt is.
Posted by Michael Carr | Jul 7, 2020 | Chart of the Day
To avoid large losses, bondholders created insurance markets for bonds.
Posted by Michael Carr | Jul 6, 2020 | Chart of the Day
Value investors tend to ignore the fact that different stocks should have different P/E ratios. They may say a stock is cheap when the P/E ratio is under 10. But if the company is failing, it deserves a single-digit P/E ratio.
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