NEW YORK (LPC/IFR) - Former Federal Reserve (Fed) Chair Janet Yellen warned on T...
NEW YORK - Former Federal Reserve Chair Janet Yellen warned on Tuesday that America’s corporate debt binge could end up sparking a deeper recession when the next downturn hits.
“I have expressed concerns about leveraged lending,” Yellen said during a keynote discussion that was closed to the press. “I do think non-financial corporations have run up, really, quite a lot of debt.” At the same time corporate buyout leverage, the amount of debt a company has compared to its earnings, rose to 6.6 times last year, up from 6.4 times in 2017, while lender protections weakened in the third quarter to a record low, according to Moody’s Investors Service.
Covenants are included into credit agreements as protection for lenders and consist of financial limits and conditions. “I am not worried about households with respect to leverage and debt,” she said. “Households are in good shape.”Yellen also elaborated on an interview published earlier this week that quoted her challenging President Donald Trump’s grasp on macro-economic policy.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York Mayor Bill de Blasio will travel to Iowa on SundayNew York Mayor Bill de Blasio, who's considering a bid for the Democratic presidential nomination, will make a trip to Iowa on Sunday, an aide confirms.
Read more »
Mixed-Use Real Estate And 'Buy Local' Boosting Restaurants Outside Los Angeles, New York CityThanks to 'buy local' and attractive mixed use lofts, cash-strapped independent restaurateurs can scale a national brand in cities besides L.A. and New York.
Read more »