What does the reckoning look like if there is a corporate leverage crisis?

I've been reading a lot lately about people being worried about bond liquidity, quality of corporate fixed income, companies borrowing lots but not expanding their business, etc..

Basically the story I get from watching bloomberg tv while I get dressed every morning is 1) People think a recession is on its way in a couple of years 2) Some people think that this recession will be sparked by a corporate leverage crisis

But I don't know what to make of it. Does it mean that large companies won't pay off their bonds and collapse? Does it mean that there will be a big sell off on bonds and the value of the bonds will go down?

But the value of bonds can't go down too far, because they will always have the intrinsic bond value, right? It's not like a stock that can go to zero.

So what does the reckoning look like?

Submitted May 05, 2018 at 09:41AM by JoanofArc5 https://ift.tt/2jzS88t