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Data: S&P Global Ratings; Chart: Andrew Witherspoon/Axios

U.S. corporate debt continues to hit new all-time highs. The chart above shows how little operating income (technically, non-financial companies' funds from operations) supports the median American company's ever-growing debt load.

Think of this in personal finance terms. Financial advisers like to say that you shouldn't have total debts, including your mortgage, of more than 2.5 times your income. In corporate America, that ratio is now more than 6.5 times.

  • Up until now, interest rates have been low and credit has been flowing freely, making it easy for companies to service these debts. But now rates are rising, and these debt loads could start to bite.
"Given where we are in the credit cycle, there are concerns about how and when prevailing conditions will turn. Such a change could spark bouts of strong volatility and periods of rapidly rising financing costs and illiquidity — limiting borrowers' financial flexibility — giving rise to increased defaults."
Jacob Crooks and David Tesher, S&P Global Ratings

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Updated 13 mins ago - Politics & Policy

Colorado police chief fires officers who reenacted Elijah McClain's death

LaWayne Mosley, father of Elijah McClain, wears a t-shirt with is son's picture on it during a press conference in Oct. 2019. Photo: Andy Cross/MediaNewsGroup/The Denver Post via Getty Images

Interim Aurora, Colo., police chief Vanessa Wilson fired two officers for reenacting the death of 23-year-old Elijah McClain and a third officer for commenting on the photo that captured the "despicable act," The Washington Post reports.

Why it matters: McClain died in the summer of 2019 after police officers held him in a chokehold and paramedics used a sedative, ketamine. People have been protesting McClain's death recently after the police killing of George Floyd revitalized the movement against police brutality.

15 mins ago - Sports

Redskins expected to change name by September

Redskins helmet circa 1970. Photo: Nate Fine/Getty Images

A source close to the negotiations tells me there is "no question" the Washington Redskins are expected to change their name before the first kickoff this fall, scheduled for Sept. 10.

Worth noting: Team owner Dan Snyder told USA Today in 2013: "We'll never change the name ... It's that simple. NEVER — you can use caps."

Updated 22 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 12 p.m. ET: 11,124,651 — Total deaths: 526,003 — Total recoveries — 5,905,310Map.
  2. U.S.: Total confirmed cases as of 12 p.m. ET: 2,808,003 — Total deaths: 129,476 — Total recoveries: 790,404 — Total tested: 34,213,497Map.
  3. States: America's exceptionally uneventful Fourth of July ICU beds in Arizona's hot spot reach near capacity.
  4. Politics: Trump extends PPP application deadlineKimberly Guilfoyle tests positive.
  5. Public health: States where face coverings are mandatory Fauci says it has been a "very disturbing week."
  6. Business: The economy may recover just quickly enough to kill political interest in more stimulus.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.