While the worry of the moment is sovereign debt default, that may soon shift to corporate debt default.
Starting in 2012, more than $700 billion in high-yield (junk) corporate debt will come due, and experts are concerned that a lot of that debt could turn sour.
Defaults and bankruptcies reportedly could be the result.
Even Moody’s Investors Service, which like the other major credit ratings agencies blessed almost any deal with a pulse as triple-A in the run-up to the financial crisis, has sounded the alarm. (more)
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