The Junk Bond King Of Detroit

Wall Street Bond Rating Agencies Gives Junk Bond Status To Detroit’s Quicken Loans

junk bond
Quicken Loans owner Dan Gilbert isn’t happy about Wall Street giving Quicken Loans a “Junk Bond” status.
Wall Street Bond Rating Agencies have given Detroit-based Quicken Loans Junk Bond status. Yet, Quicken is enjoying strong profits.
Quicken Loans is one of the city’s largest employers and the biggest revenue-generator in the business empire of Dan Gilbert.
The reality in the finance world is much different. Quicken Loans is viewed as a risky business model. Its debt is commonly referred to as “junk”.
Quicken’s debt is also considered too dangerous for some investors such as some pension funds. Many pension funds and money market funds are not allowed to buy junk bonds.
The fundamental issue for Wall Street is the nature of its business as a non-bank mortgage lender. As a result, the rating agencies see a lender without any bank deposits high risk.

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