TIME TO CONSIDER TAKING PROFITS IN RESTAURANTS & FAST FOODS
It may be time to consider taking profits on the SII Restaurant / Fast food sector.
HERE IS A REASON TO CONSIDER --- Early Warning Cracks Are Showing & Need to be Heeded!
The proportion of US junk bonds trading at distressed levels in November hit the highest level of the year led by retail and restaurants, S&P Global Ratings reported.
Retail and restaurants had the highest distress ratio of 19.5 per cent, followed by telecommunications at 15.6 per cent, insurance at 12.5 per cent and oil and gas at 12.1 per cent.
Retailers and restaurants have been hit by a shift in consumer preferences and competition from e-commerce, weighing on companies’ gross margins.
Global Ratings Franchise chains like Taco Bell have been cutting up their debt into tranches with different levels of risk, and promising investors first dibs on revenues from franchises and company-owned restaurants as they seek to match investors’ demand for high-yielding assets with companies’ cash needs.
