Aussie Corporate Leverage on Track for Three-Year Low: Chart

Australia’s largest listed companies are choosing to keep a lid on leverage, even as the central bank has sought to stir the nation’s so-called animal spirits with record low benchmark interest rates. Share buybacks like the one recently announced by Telstra Corp. are the exception rather than the rule and analyst estimates indicate that a ratio of net debt to earnings will slide to a three-year low in 2016. “Perhaps Australia Inc. is saving its debt capacity for when equity valuations are lower,” Credit Suisse Group AG analysts led by Hasan Tevfik wrote last week.

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