The Single Best High-Yield Play Is Paying More Than 5% Right Now
June 30, 2016 at 05:00 AM EDT
There are lies, there are damned lies, and then there are corporate credit bulls. Should a corporate credit bull assure you that the sun will rise in the east tomorrow morning, get verification from a Société Générale analyst before you consider acting on the information. One of the credit bulls' most infamous (and, unfortunately, popular) lies is that "Corporate America is flush with cash." This is dangerously misleading. It is true that a small number of companies, primarily tech giants, do have large, healthy cash hoards, but the average U.S. corporation is not only not rich, but is in fact indebted to a horrifying degree - more so than before the financial crisis. In fact, right now, just 50 companies - the top 1% of all U.S. corporations - control half the cash on the S&P 500. The other 99% of companies are in terrible shape, leveraged to the gunwales. They are toxic and liable to default. That's bad news for buy-and-hold investors, and even worse for bondholders, but I'm going to show you how to make a killing on the best debt out there... Tags: market crash To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Single Best High-Yield Play Is Paying More Than 5% Right Now appeared first on Money Morning - We Make Investing Profitable .