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Chart of the Day: Over leveraging in U.S.

Higher leverage was one of the influential factors in the great recession of 2008/09. This chart from Bank of America Merrill Lynch shows that not much has changed. While some would like to blame the commodities decline …

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Chart of the Day: Over leveraging in U.S.
Chart courtesy - BofAML, Zerohedge.com

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Higher leverage was one of the influential factors in the great recession of 2008/09. This chart from Bank of America Merrill Lynch shows that not much has changed. While some would like to blame the commodities decline to be behind the woes in the High-yield debt market, this chart clearly shows that even excluding the commodities, the leverage (net debt/EBITDA) is at all-time high.

 

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