Will Nazgowitz, who manages about $ 1.3 billion in assets as CEO of Heartland Advisors, does not call for a "full financial crisis," but with trillions of corporate debt that will emerge in the coming years, the veteran industry ["Withlowinterestratesastrongeconomyandrelativelyeasylendingstandardstheideawasthatredeemingorfinancingacquisitionsisalow-riskstrategy"Nasgovitzexplainedinarecentpost"ButthenextfiveyearscanseriouslytestthislookfromPoliana"BernieSandersShookGoldmanGoldsmith'sGoldmanGoldsmithLloydBlankfeinto"MaketheRichandRicher"
This table to illustrate his position:
As you can see , about $ 3.3 trillion – or 48% of all current trade debts – come in by 2023. Time may be problematic. in order for the market to have mercy in the best scenario, not to mention that late in the economic expansion, "Nashgovic writes. "Adding our sense of caution is an early sign that credit standards have begun to tighten for traders and industrial borrowers."
He says that as banks become tighter, borrowers can pay higher rates only to provide retirement funds outstanding obligations.
"Although we do not see signs of a complete financial crisis on the horizon," he concluded, "we believe excessive debt adds unnecessary challenges to companies as a whole and is likely to be the last wind
Why investors do not have to worry about banks that tighten credit
Not much fear on the market on Wednesday with Dow
DJIA, + 0.26%
and S & P 500
SPX, + 0.19%
both moved a little higher.