Corporate debt levels would amplify downturn, Brainard warns

Lael Brainard
Fed/Flickr

Federal Reserve governor Lael Brainard has hinted that measures to curb financial vulnerabilities should be used, warning that the corporate debt market could amplify a future downturn.

Leveraged lending, corporate debt-to-asset ratios and the share of low-rated investment-grade bonds are all likely breaching levels that could be expected to amplify a downturn, Brainard warned in a testimony to the House of Representatives’ subcommittee on financial services today (September 25).

Historically,

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