Wall of Debt
▪ The number of indebted companies has risen sharply around the world
▪ At the same time, global credit quality is deteriorating
▪ Companies will have to repay or roll approximately 30% of their bonds over the next three years
▪ Defaults will increase as earnings slow, rates rise, and investors reduce their exposure to risky assets
▪ Investors can take advantage by adopting a long/short equity basket

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