2015-11-03 — bloombergview.com
Credit traders are sending an ominous message to U.S. companies: Either stop borrowing so much money or prepare to face some serious consequences. Investors are now demanding a 61 percent bigger premium over benchmark rates to own top-rated bonds of industrial companies compared with June 2014.
... this year's weakness in credit markets isn't just a technical blip; it highlights a significant deterioration in corporate balance sheets. After all, what have these companies done with the money they've raised? They've bought back their own shares and paid dividends to their shareholders. What they haven't done is use the money to improve their businesses.
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