HAS THE CORPORATE SECTOR BECOME OVER-RELIANT ON DEBT?
25 September 2020
4pm - 5pm BST (GMT+1)
A decade on from the financial crisis, the pandemic has once again underscored the fragility of an economy built on corporate debt. As companies take out more loans to withstand the pressures of lockdown, they risk entering a period of weaker economic growth with even higher debts. Due to the massive build-up of corporate debt in the US in the past few decades, companies now owe a record $10tn — equivalent to 49 per cent of economic output. Is it time to rethink the incentives for companies taking on such a large volume of debt, and is there a way to unwind it without causing a broader crisis?
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