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Market Extra: High-flying tech sector is vulnerable to deteriorating credit quality

Both equity and bond investors have continued to crowd into the U.S. technology sector in 2018, but deteriorating credit quality of this sector suggests serious troubles ahead, according to analysts at S&P Global Ratings.

Nearly half of the $698 billion borrowed by technology companies since 2013 was issued by Apple Inc. AAPL, -0.55% Microsoft Corp. MSFT, -0.78% Oracle Corp ORCL, -0.53% Cisco Systems Inc. CSCO, -0.31% and IBM Corp IBM, +0.72% — all of which have the highest investment grade ratings.

But excluding some of the aforementioned tech giants, the debt profile for tech issuers may be less than rosy for both equity and bond investors.

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