"Despite being a rate sensitive investment, NASDAQ has not responded to the implications of interest rates. If rates continue to rise in 2023, we may see a significant sell-off," said Bruno Schneller, a managing director at INVICO Asset Management.The risk premium on corporate debt has fallen since the start of the year and signals little risk, but corporate defaults are rising.It expects U.S. and European default rates to reach 3.75% and 3.
And with defaults rising, the focus is on the less visible private debt markets, which have ballooned to $1.4 trillion from $250 billion in 2010. In a low rate world, the largely floating-rate nature of the financing appealed to investors, who can reap returns up to the low double digits, but now that means ballooning interest costs as central banks hike rates.Bitcoin staged a recovery at the start of the year but was languishing at two-month lows on Friday .
Caution remains. After all, rising borrowing costs roiled crypto markets in 2022, with Bitcoin prices plunging 64%., left investors shouldering large losses and prompted calls for more regulation., one of the biggest banks in the cryptocurrency industry announced it would wind down operations and sparked a crisis of confidence in the industry.
Biden’s Bank collapse.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »