Okada, Smead on Corporate Credit, Ratings

The transcript discusses concerns over corporate credit, focusing on the triple B market and investment grade bonds. It highlights the risks associated with high leverage in companies like CVS, GE, and AT&T, and the potential impact on the economy. The conversation shifts to Tesla, examining its debt situation and market speculation, with a broader critique of truthfulness in the tech sector.

What is a major concern for the triple B market according to Nick Muchos?

• Fraudulent activities

• Rapid increase in ratings

• Gradual decrease in ratings

• Immediate recession in the US

What is the approximate size of the investment-grade bond market discussed?

• $7 trillion

• $5 trillion

• $10 trillion

• $12 trillion

What is the leverage situation of companies like CVS, GE, and AT&T?

• They have leverage around four times

• They have leverage below the double B index

• They have leverage similar to triple A companies

• They have no leverage issues

What is Tesla's bond rating mentioned in the discussion?

• Double B

• Triple C

• Triple B

• Triple A

What issue is highlighted about the tech sector's transparency?

• Complete transparency

• Lack of truth-telling

• Over-regulation by the SEC

• High level of truth-telling