‘Net corporate debt to rise by $1 trillion in 2020’
Net corporate borrowing around the world will increase by $1 trillion in 2020 as the coronavirus pandemic is further increasing companies’ need for debt financing, according to research by Janus Henderson Investors.
Global corporate debt had already surged to a record $8.3 trillion in 2019 before start of the pandemic, an increase of 8.1% year-on-year. Company resources were depleted by debt-financed acquisitions, large share buybacks, record dividends, and the chilling effect on profits caused by trade tensions and a global economic slowdown.