Canadians’ insolvency problems might not be as bad as everyone thinks, C.D. Howe says

The increase in Canadian insolvency filings may be less serious than previously thought, according to one of the country’s top economic research institutions. Consumer insolvencies in Canada rose to the highest in eight years in March. However, it’s difficult to know “how loudly the alarm bell is ringing” because the publicly released figures don’t distinguish between cash flow and balance sheet insolvencies, the C.D. Howe Institute said in a blog posting. Balance sheet insolvency is when a person is still unable to pay off debts, even after selling off all…

Why Is There Such an Insatiable Appetite to Invest in Unprofitable Companies?

Revenue is vanity; profit is sanity. May 23, 2019 6 min read Opinions expressed by Entrepreneur contributors are their own. It’s fundamental, the raison d’être, the very purpose of running a business: profit. But you don’t need to look very far to see companies securing massive investments while losing billions. Some are even raising further investment despite previous rounds yet to bear any returns. So why is there such an insatiable appetite to invest in unprofitable companies? Misdirection metrics Companies that have a massive user base/revenue/other impressive sounding metric, but…

SHYG: Wait Till The Beginning Of The Next Economic Cycle – iShares 0-5 Year High Yield Corporate Bond ETF (NYSEARCA:SHYG)

SHYG: Wait Till The Beginning Of The Next Economic Cycle - iShares 0-5 Year High Yield Corporate Bond ETF (NYSEARCA:SHYG)

ETF Overview iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) focuses on corporate bonds that have ratings below investment grades. The ETF tracks the Markit iBoxx USD Liquid High Yield 0-5 Index. SHYG provides exposure to a broad range of U.S. high yield corporate bonds that will mature within 5 years. In addition, it provides a vehicle for investors seeking higher income in the fixed income market. However, these bonds have much higher credit risk than investment grades bonds. The fund is especially vulnerable in an economic recession as…