Leveraged Loans May Face Hard Landing, Amoroso Warns

The video discusses the potential for a soft landing in the economy, which may involve a mild recession. It contrasts this with a hard landing, often associated with financial crises and excessive leverage. The current economic situation shows resilience, with strong household and corporate balance sheets and well-capitalized banks. However, there are concerns about the leveraged loan market, which has grown significantly and may face challenges due to rising interest rates. The video emphasizes the need to monitor these pockets of leverage to avoid a hard landing.

What factors contribute to the resilience of household and corporate balance sheets today?

What potential risks are associated with the rising interest rates for companies?