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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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Markets regulator Sebi has refused to extend the September 1 deadline to implement the new rules on margin pledge, stock brokers’ association Anmi said on Monday. The new mechanism is aimed at bringing transparency and preventing brokerages from misusing clients’ securities.

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