America’s Zombie Companies Are Multiplying and Fueling New Risks
- The Fed’s credit-market support is staving off bankruptcies
- Yet it may also be setting the economy up for long-term pain
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As the Federal Reserve pulls out all the stops to bolster credit markets, corporate America is gorging on debt.
From Carnival Corp., Marriott International Inc. and Delta Air Lines Inc. to Gap Inc. and Avis Budget Group Inc., many of the companies hardest hit by the coronavirus outbreak have priced billions of dollars of bonds and loans in recent weeks.