Hedge Fund

First Quadrant Research:  "Minsky Moment" Risks Are Rising

July 2020

posted by Global Diversified Macro Fund
3mos ago 379

In response to the COVID-19 crisis, an unprecedented amount of leverage has entered the global economy, particularly as a percentage of GDP. While financial companies are typically leveraged, the amount of debt being held by non-financial companies and individuals has ballooned just as incomes have declined. This combination of rising debt and falling income may be setting the stage for another financial crisis.

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