10 months OECD: Corporate debt a risk to global growth Manilatimes |Biz
PARIS: Record levels of corporate borrowing could become a risk for the world economy if slowing growth prevents companies from redeeming their maturing bonds over the next few years, the OECD warned on Monday. The value of outstanding bonds issued by the world’s non-financial companies has doubled since the 2008 global financial crisis, the Paris-based body said in a report. Taking advantage of ultra-low interest rates, companies have borrowed like never before, boosting the corporate bond market to $13 trillion by the end of 2018. While small companies typically finance themselves with bank loans, larger corporations almost always issue bonds. After splurging for ... more