It has been just revealed the fact that Corporate America will see some pretty heavy times in the future. Check out the latest reports about this.
Corporate America to see gloomy days ahead
Chamath Palihapitiya, CEO of Social Capital and an early investor in Bitcoin, is cautioning about the potential for many of America’s largest companies to suffer from mounting debt.
With concern, he informs his 1.6 million Twitter followers that there is an enormous debt wall looming over Corporate America, which he believes is being overlooked.
Palihapitiya stated the following:
“A ‘debt wall’ is a term that describes how much debt is due at various times. If a lot of debt comes due at the same time, it puts a lot of pressure on a company…
Prepare for a bunch of companies that will not be able to refinance their debt and will thus see their equity value incinerated. This will hit the private equity industry very acutely, whose core playbook involves wrapping their companies in gobs of high yield debt.”
He continued and said this:
“That said, this will also ultimately create opportunities for those with capital on the sidelines to act as a buyer and recap the best of these companies.
Expect a bunch of articles about potential corporate bankruptcies starting this fall…lots of money to be made if you’re paying attention.”
Palihapitiya recently forecasted that the interest rates would be staying “higher than you want” for “longer than you like.” this will happen particularly on the heels of China cutting rates as its economy slows.
Booming reports from the crypto space
Several major financial institutions worldwide have provided financial support to the recently launched digital asset marketplace, EDX Markets (EDX).
A press release has revealed that the company has secured a round of funding from esteemed financial giants such as Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial.
The funding will “support EDX as it continues to develop its trading platform and solidifies its market leadership position.”
Currently, EDX only allows trading for four cryptocurrencies namely Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
