Surveillance: Stepping on Brakes with Slok
Bloomberg Surveillance
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The Implications of Higher Cost of Capital
This chapter discusses the implications of a higher cost of capital for companies and borrowers, including its impact on consumption and corporate spending. It also explores the relationship between higher interest rates, asset prices, and the attractiveness of risky assets. The speakers analyze the increase in issuance of investment grade bonds and the default rate of high yield bonds, as well as the potential consequences of rising default rates in high yield bonds on the economy.
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