Archives for June 2016

June 2016 - Page 2 of 28 - Money Morning - Only the News You Can Profit From

The Single Best High-Yield Play Is Paying More Than 5% Right Now

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...