James Montier on the fragility of corporate debt

A huge amount of corporate debt creates a systemic vulnerability. Half of the outstanding corporate debt is now rated the lowest investment grade, which really is quite worrying. At some stage, we’ll encounter a downturn. As an equity investor, you’re junior to this paper that needs to be paid.

~ James Montier, strategist, GMO, "In Defense of Modern Monetary Theory," Barron's, July 27, 2019