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CENTRAL CARD
The credit quality of the debts issued by the joint stock companies FAANG – Facebook, Amazon, Apple, Netflix and Google (Alphabet) – has slipped in 2018 compared to recent history, about a fifth of bonds rated lower than investment grade. Between 2014 and 2017, the cohort of technology companies saw between 4% and 11% of their debt rated below investment grade. While a greater proportion of bonds issued up to now in 2018 is noted, the total amount of debt sold has declined significantly. The FAANGs have issued about 39 billion USD so far in 2018, down from the 149 billion USD of the previous year and at an annual average of 53.7 billion USD for the three years ended in 2016 Netflix said on Monday that it plans to raise an additional $ 2 billion via high yield debt. market to finance new content, in addition to the $ 5 billion already unpaid debt related to the company.
A brief overview of the total corporate bond market in the United States reveals a stable 75/25 spread between quality bonds and low quality issues.
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The credit quality of the debts issued by the joint stock companies FAANG – Facebook, Amazon, Apple, Netflix and Google (Alphabet) – has slipped in 2018 compared to recent history, about a fifth of bonds rated lower than investment grade.
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