Corporate Debt: The Great Deleveraging

Corporations are deleveraging their balance sheets—whether by choice or because of circumstances. A number of obvious factors are behind this, one being investor sentiment in the capital markets. The capital markets are generally more receptive and have a more favorable view of issuers with solid credit profiles and sufficient liquidity to withstand and persevere through the economic downturn. For example, investment-grade (BBB- or above) bond issuance is robust because investors have more confidence about the ability of companies with stronger credit profiles to maintain acceptable credit quality in this recession.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.