corporate debt News

Debt Insurance Staging a Comeback with Investors As Distressed Situations Increase

Corporate debt insurance that fell out of favor after the financial crisis is returning to vogue as default rates rise and a series of high-profile failures pay off for short sellers. Credit-default swaps trading increased 7% this year, with average …

Federal Reserve Again Warns About Increase in High-Risk Company Debt

The Federal Reserve escalated its warnings about the perils ofleveraged loan Monday, saying firms with the worst credit profiles are the ones taking on more and more debt. The Fed also left a question unanswered: Is it going to do …

Concerned Bankers, Investors Warn Federal Reserve About Leveraged Credit Market

Bankers, executives and investors are warning Federal Reserve officials behind closed doors that record leveraged lending to companies from lightly-regulated corners of Wall Street could make any economic downturn harder to manage. With the second-longest U.S. expansion in its advanced …

CLO Fever: Small Insurer Bets Big on Booming Leveraged Loan Market

Advantage Insurance of San Juan, Puerto Rico, is no one’s idea of a financial colossus. But this little insurance company is making a giant bet on some of the hottest investments around: collateralized loan obligations. That a company with about …

Swiss Re Hikes Corporate Debt Holdings, Cuts Risky Government Bonds

The European Central Bank has turned government bonds into one of the riskiest asset classes, prompting Swiss Re AG to move more of its investments into corporate debt, according to the reinsurer’s chief investment officer. “If you’re looking for a …