A Monumental Financial Junk Pile Called Corporate Debt

The silly-money policies of the last decade have left almost all assets overvalued. Real estate, public and private equity, especially in the tech sector, collectibles, debt in general and emerging markets are all well above sustainable levels. But if we are looking for a catalyst for the next market disaster, there is one outstanding candidate – corporate debt of large companies. It had a relatively gentle let-down last time around, and its market is exceptionally opaque even by the standards of today’s murky financial markets.