SHOCK WARNING: Huge global financial crash is IMMINENT, says £150bn asset manager

Thursday, September 22, 2016
By Paul Martin

A DEVASTATING market crash is due to wreak chaos across the world, following a debt binge worse than the lead-up to the 2008 financial crisis, a top investor has warned.

Thu, Sep 22, 2016

America’s corporate debt has TRIPLED since 2008, from £1.5trillion ($2tn) to an eye-watering £4.6tn ($6tn) today.

And the borrowing bonanza has pushed the company debt to earnings ratio to a record high.

This huge debt bubble is no longer sustainable, according to Tad Rivelle, chief investment office at TCW Group, who has now raised the alarm.

The asset manager has advised clients to start preparing for a serious shock and a “bad ending” to the credit bubble.

Mr Rivelle, whose firm looks after £150bn ($195bn) of investments, said: “Corporate leverage, which has exceeded levels reached before the 2008 financial crisis, is a sign that investors should start preparing for the end of the credit cycle.

“The credit-fuelled expansion inevitably comes to a bad end… We’ve lived this story before.”

Latest figures show September sales of corporate bonds – or debts – passed $1tn for the fifth consecutive year.

The Rest…HERE

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