Opinion: Opinion: More rotting assets are lurking in the shadows of the financial system

Opinion: Opinion: More rotting assets are lurking in the shadows of the financial system

Like a lightning bolt that suddenly throws a landscape into sharp relief, higher interest rates have exposed where the financial system could buckle or break—but higher borrowing costs will last longer than a flash. The nonbank sector—made up of the thousands of private-equity funds, hedge funds, and insurance companies—now plays role the biggest banks used…

Big-name investors are back putting more ‘junk’ in their funds, despite the carnage in bonds

Big-name investors are back putting more ‘junk’ in their funds, despite the carnage in bonds

Wall Street investors specialized in buying risky forms of corporate debt to slice-and-dice into securities have added an estimated $2 billion in high-yield, or “junk bonds,” to their funds already this year, according to an analysis by BofA Global. Funds managed by the Carlyle Group Inc. CG, +1.36%, KKR & Co. Inc. KKR, +0.95% and…

This segment of the corporate bond market is flashing a warning that investors shouldn’t ignore

This segment of the corporate bond market is flashing a warning that investors shouldn’t ignore

U.S. stocks just cemented their worst start to a year in more than half a century. But as the slowdown in the U.S. economy becomes increasingly difficult to ignore, the market for high-yield corporate bonds — often referred to as “junk bonds,” a Wall Street sobriquet for the debt of companies with less-than-stellar credit ratings…