Losses on bonds from defaulted companies are likely to be higher than in previous cycles, because U.S. issuers have more debt relative to their assets, according to BoA Corp. strategists. Those high levels of borrowings mean that if a company liquidates, the proceeds have to cover more liabilities. Source: Bloomberg
U.S. private hiring was less than forecast in September as wage gains cooled, offering a warning that the record-long expansion may be starting to falter even as the jobless rate fell to a half-century low. Source: Bloomberg
- The ISM U.S. manufacturing Purchasing Managers’ Index plunged to 47.8% in September, the lowest since June 2009.
- This marks the second consecutive month of contraction.
- The ISM employment gauge for the sector dropped to the lowest since January 2016.
- The Federal Reserve says overall consumer borrowing increased by $23.3 billion in July after a $13.8 billion advance in June.
- It was the biggest monthly gain since a $29.9 billion jump in November 2017.
- Borrowing in the category that covers auto and student loans also posted a sizeable gain.
