Rieder: Bond Issuance Provides Companies a Win

The video discusses the US corporate bond market, highlighting trends in bond issuance and corporate leverage. It explains how companies are increasing debt without rising service costs due to low interest rates. The demand for yield gives issuers an advantage, allowing for covenant light loans. The video also addresses the challenges of monetary policy exit strategies and the implications of rising interest rates. Finally, it covers market reopening after a freeze, focusing on risk assessment and the role of non-cyclical companies.

What factors are influencing companies to keep issuing debt in the current market?

How does corporate leverage relate to debt service in the current economic environment?

What are the implications of low interest rates on corporate debt issuance?

Discuss the potential risks associated with companies accumulating high levels of debt.

What challenges do companies face if interest rates rise significantly in the future?