Short-term business debt levels continue to expand in the first quarter alongside higher aggregate industrial output data, Fed reports show, even as high-grade issuers continue to refinance short-term debt balances at a steady clip this year.
Green Tree Financial found itself in a life-threatening credit squeeze because the market had lost faith in its mortgage-backed securities and refused to refinance its short-term debt.
Bencik writes that he previously believed the company would be able to refinance its short-term debt, and that it still might be possible, but noted that the debt news suggest a current lack of investor interest.