In a recession half as severe as the 2008 financial crisis corporate debt-at-risk - which is owned by firms that can’t cover interest expenses with their profits - could increased to $19 trillion, or almost 40% of total corporate debt in major economies, the IMF said.
As demand for investment-grade debt has grown, the creditworthiness of issuers has fallen. According to BlackRock, leverage levels are creeping toward the highest readings since 1992. The firm measured leverage using a ratio of debt minus cash and cash equivalents to twelve-month EBITDA.
Our IP Address: