Record $1 Trillion Cash Haul to Spur Euro Growth: Credit Markets

Companies in Europe have amassed almost $1 trillion through earnings, bond sales and by refinancing credit lines, foreshadowing a potential surge in acquisitions and investment.

Glencore Xstrata Plc, Siemens AG and Daimler AG are among at least 50 companies in the region that refinanced 143 billion euros ($194 billion) of credit facilities this year paying an average interest margin of 0.59 percentage point, the lowest since 2007, according to data compiled by Bloomberg. Lower debt costs have helped Stoxx Europe 600 Index members accumulate more than 600 billion euros in cash, adding an extra 200 billion euros since 2008, as companies hoarded profits and shied away from takeovers during the region’s longest recession.