Struggling companies that otherwise might not be able to stay afloat have found a friend in the Federal Reserve.
The central bank's cheap-money policies have allowed borderline
companies to get low-cost financing thanks to investors who are
thirsting for yield and buying risky bonds as the Fed keeps its target
funds rate near zero.
While that's been a boon for poorly rated
firms, it also poses the threat that companies that otherwise might
fail are getting artificial support and in danger of causing substantial
economic damage once interest rates rise.
READ MORE: http://www.cnbc.com/id/100558326
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