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Remember the subprime mortgage mess? $1.2 trillion in risky corporate debt is flashing similar warning signs

WASHINGTON — Indebted borrowers increasingly take out high-interest, adjustable-rate loans that are packaged into securities and sold to investors eager for a better rate of return. Everything’s fine while the economy is growing. But when it slows, those borrowers could default, causing problems to cascade through the financial system. […]

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