Sovereign shocks set the clock back

Rising oil prices, weak economic data and sovereign worries have pushed back the debt-equity clock, which is bad news for shareholders, says ING Investment Management

Rising oil prices, weak economic data and sovereign worries have set the so-called debt-equity clock back, according to ING Investment Management, which is bad news for shareholders, but good news for corporate bondholders.

The debt-equity clock, a methodology developed by Morgan Stanley, describes the performance of corporate debt and equity securities at different stages of the economic cycle.

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