moneymakeover
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Irish times, IMF
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www.irishtimes.com
Global debt markets may come to a sudden stop, echoing the 2008 credit crunch, if companies become more distressed amid a prolonged recession due to the Covid-19 crisis, the International Monetary Fund (IMF) has warned.
The greatest risks are in the markets for junk bonds, buyout loans and private debt, which have expanded rapidly since the global financial crisis to a total of $9 trillion (€8.2 trillion) with the help of a general weakening of lending standards and borrowers’ creditworthiness, said Tobias Adrian, head of the IMF’s monetary and capital markets department, at the launch of the fund’s latest global financial stability report.
Coronavirus could freeze debt markets, IMF warns
Junk bond market among areas most at risk after general weakening on lending standards
Global debt markets may come to a sudden stop, echoing the 2008 credit crunch, if companies become more distressed amid a prolonged recession due to the Covid-19 crisis, the International Monetary Fund (IMF) has warned.
The greatest risks are in the markets for junk bonds, buyout loans and private debt, which have expanded rapidly since the global financial crisis to a total of $9 trillion (€8.2 trillion) with the help of a general weakening of lending standards and borrowers’ creditworthiness, said Tobias Adrian, head of the IMF’s monetary and capital markets department, at the launch of the fund’s latest global financial stability report.