King Street: Markets have a math problem

Steam rises as pedestrians cross a street near the New York Stock Exchange (NYSE) in New York. “Consider the more than US$1 trillion (RM4.5 trillion) leveraged loan market,” said Goldschmid. — Bloomberg

NEW YORK: Companies are about to get hit by a dangerous combination of too much debt and too little cash flow.

That’s according to Paul Goldschmid, a partner and co-portfolio manager at King Street Capital Management, who said: “There’s a huge math problem in credit right now.