The big, dangerous bubble in corporate debt

Super-low interest rates have fuelled a wave of risky, overpriced lending. The end of that party will not be pretty.

The US$30 trillion (S$41.2 trillion) domestic stock market seems to get all the attention.

When the stock market sets new highs, we instinctively feel things are good and getting better. When it tanks, as happened in the initial months of the 2008 financial crisis, we think things are going to hell.

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A version of this article appeared in the print edition of The Straits Times on August 13, 2018, with the headline 'The big, dangerous bubble in corporate debt'. Print Edition | Subscribe