Reported about 13 hours ago
Recent trends indicate that credit quality may have reached its peak as US companies like those with BBB ratings are increasing share buybacks and capital expenditures after a period of restraint. While there are no immediate signs of distress, the fundamental credit picture is shifting with weaker investment-grade firms prioritizing shareholder returns over prudent debt management. This uptick in corporate spending, partially driven by advancements in artificial intelligence, coupled with a rise in mergers and acquisitions, suggests a changing landscape for corporate credit.
Source: YAHOO