Corporate Leverage in the U.S. U.S. corporate debt is high. This chart shows that U.S. corporate leverage is close to its previous peak on a net debt to EBITDA. See also “U.S. Leveraged Loan Index Rating Breakdown: 2008 vs. 2019.” Picture source: Credit Suisse Research
Value of U.S. Corporate Bonds by Rating Since the Great Recession, the U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. If the U.S. economy goes wrong, this is bad news for investors. Picture source: The Wall Street Journal
U.S. Debt Ratios to GDP (Household, Corporate, Government) U.S. households remain far less in debt than during the Great Recession, but U.S. corporate debt continues to rise rapidly and has exceeded record levels . Picture source: Pictet Wealth Management
The U.S. Corporate Bond Debt Rated ‘BBB’ Exceeds $3 trillion The U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. That’s 53% of investment-grade bonds in the United States. Keep in mind that any drop in the credit ratings could amplify the next recession: many investment grade investors own BBB-rated bonds, but are not allowed…
Corporate Stock Buybacks Are Booming Since 2010! Thanks to tax cuts and low interest rates. What would happen if companies reinvested instead of buying their own shares? Unfortunately, artificially low interest rates are associated with unnecessary debt. See how corporate debt-to-GDP has increased since the Great Recession.
