Topic: Corporate Debt

The long-term case for investing in emerging-markets is based on growing worldwide demand for commodities and the expansion of an enormous new middle class in those countries.

Concern is growing at the painfully slow progress Europe is making in tackling a much bigger mountain of corporate and household debt.

Throughout the financial crisis, large debt loads weighed on company balance sheets and had serious implications for the firms that let their borrowing get out of control. Other companies, however, have a history of operating with low debt levels, and many choose to issue no debt at all. Instead of debt, these companies hold cash and liquid investments in order to make acquisitions and fund other investments.

The last four months of the year have seen a big jump in U.S. companies filing for  bankruptcy protection.  In fact, four of the 10 largest bankruptcies of 2011 were filed in November. According to Moody's and Standard & Poor's, the rising trend of corporate defaults is expected to continue into 2012.