Jim Grant, the founder of Grant’s Interest Rate Observer, has cautioned about the state of business and credit conditions in the US. He highlighted PitchBook data from last week, which revealed that the supply of junk bonds had increased significantly, with two-thirds of the year’s supply backed by specific collateral. In addition, the syndicated leveraged loan issuance registered at just $1.3bn from January to May, the weakest primary activity since 2009. Grant warned that the ongoing process of high cost of capital will continue to slow economic activity, likely induced by monetary tightening. Therefore, he suggested investing in gold and other metals to protect one’s future.
Jim Grant Issues Warning About Business and Credit Conditions in the US
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