Skip to content
Subscriber Only

Citi Warns U.S. Credit Locked in a Losing ‘Internecine’ Battle

  • Struggle is emerging that pains lenders and borrowers alike
  • Bank says most ratings discrepancies resolved with downgrades
Video player cover image
U.S. Student Loan Debt at Record High
Updated on

Citigroup Inc. is warning the heart of the U.S. corporate bond market looks braced for its biggest test since the crisis as a backlash over leverage fuels an “internecine battle” that harms borrowers and lenders alike.

High-grade non-financial companies have seen their total debt burdens rise 10 percent year-on-year since 2010 -- double the 5 percent growth rate of their earnings. The backdrop for Corporate America’s debt now looks “foreboding” as foreign investors beat a retreat, according to Citi.