The Morning Ledger: Easy Credit Buys Time for Retailers

Easy credit is delaying the retail industry’s day of reckoning. Investors, desperate for higher returns, are eagerly lending to risky borrowers like RadioShack, Sears and J.C. Penney, buying the chains time to try to turn around their businesses in the face of weak sales and fierce competition, writes CFOJ’s Vipal Monga in today’s Marketplace section. Retailers can borrow money by pledging collateral such as inventories and buildings. But the loans can be expensive, putting pressure on businesses by increasing their interest burdens.

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