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Equity and debt investors are placing opposing bets on Corporate America’s financial health. The rift is unlikely to last. As monetary conditions tighten and higher short-term rates spur competition for capital, stock markets are shifting towards companies with low debt loads and healthy financial metrics -- in contrast to fixed-income peers. "Equity investors are generally preferring strong balance-sheet stocks, because this is where the earnings growth is, such as technology shares," said Stephen Caprio, credit strategist at UBS Group AG. "But credit investors are primarily interested in yield and default risk.”. S&P 500 stocks with strong balance sheets gained 9.4 percent this year, com... Full story

13 June