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Take Five: Credit crunch at time of rock-bottom rates?

Is it possible we may see a wave of corporate defaults at a time when interest rates are at record lows and falling? In Europe, where many rates are below 0%, signs of stress are emerging as the coronavirus outbreak hits companies’ bottom lines. An index of credit default swaps on 75 high-risk European companies compiled by IHS Markit — the iTraxx Europe Crossover – has surged to the highest in almost four years. The list is pretty diverse: airlines, retailers, carmakers and others all feature.

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Exclusive: U.S. House panel faults FAA review of Boeing 737 MAX, plane design failures

A U.S. House investigative report into two Boeing 737 MAX crashes that killed 346 people will fault the Federal Aviation Administration’s (FAA) approval of the plane and Boeing’s “design failures.” The preliminary investigative findings from the U.S. House Transportation Committee, which were seen by Reuters and are being released later on Friday, found the FAA’s “certification review of Boeing’s 737 MAX was grossly insufficient and that the FAA failed in its duty to identify key safety problems.” The 13-page report also finds Boeing’s design “was marred by technical design failures, lack of transparency with both regulators and customers.” …read more […]