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blackbootz · 1913 days ago · link · · parent · post: Remember the subprime mortgage mess? $1.2 trillion in risky corporate debt is flashing similar warning signs
I only recently learned this, and it's just two: Microsoft and Johnson & Johnson's. In 1992, the number of AAA-rated companies was 98. I was also surprised to learn how small a fraction of corporate financing comes from issuing equities. Equity financing is dwarfed by bond issuing, although it's the former we hear about except for in rare instances like the OP here. I seem to recall a professor saying that the bond market itself is dwarfed by the largest source of commercial financing, i.e. bank loans. I can't find the graph he showed, I'll have to settle for this one (ends in 2009) that omits the loan volume. But I recall a similar proportion of bonds:equities as loans:bonds.