“These borrowers have $8 of debt for every $1 of cash,” wrote Andrew Chang, primary credit analyst at S&P Global. “We note these borrowers, many sponsor-owned, borrowed significant amounts under extremely favourable terms in a benign credit market to finance their buyouts at an ever-increasing purchase multiple without effectively improving their liquidity profiles.”

b_b:

And the riskiest borrowers are more leveraged than they were even during the financial crisis, according to S&P's analysis, which looked at 2017 year-end balance sheets for non-financial corporations.

Non-financial corporations went the way of the buffalo long ago. What they make no longer matters compared to how they finance what they make.

posted 2122 days ago