Leverage Angst Worse Than '08 Grips Stocks, Ignored by Bonds
- Weakest companies trail in S&P 500, even as their bonds win
- More investors see excesssive leverage than at crisis peak
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Equity and debt investors are placing opposing bets on Corporate America’s financial health. The rift is unlikely to last.
As monetary conditions tighten and higher short-term rates spur competition for capital, stock markets are shifting towards companies with low debt loads and healthy financial metrics -- in contrast to fixed-income peers.