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John Authers

Solvency Is a Serious Issue. It Isn't a Crisis

The debt taken on to tide companies through the Covid pandemic looks manageable.

Not a cause for wholesale alarm.

Not a cause for wholesale alarm.

Photographer: ANGELA WEISS/AFP/Getty Images

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If there is one financial risk that dogs the world, it concerns solvency. Will borrowers continue to be able to finance their debt? The terrifying liquidity crisis of March caused a lot of debt to be taken on to deal with the problem, and many companies and people have made do with far less revenue than they had expected since then.