U.S. Corporate Debt Soars to Record $10.5 Trillion

U.S. corporations now owe a record $10.5 trillion to creditors, either in the form of bonds or loans, a stunning 30-fold increase from a half-century ago, according to a new BofA Global Research report.

By far, the biggest chuck of debt has been taken out by American companies with high “investment-grade” credit ratings of AAA to BBB, a segment of the market where borrowing has more than doubled in the past decade to roughly $7.2 trillion.

Higher ratings should be a good thing for creditors, particularly if American corporations acts as investors expect, and start paying down their debts once the health threat of COVID-19 can be better managed, the economy recovers and corporate earnings pick back up. Read more…..


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