IMF warns Corporate Debt is $27Trillion timebomb

October 21, 2019

Key Sections of this AFR article:

  • The Washington-based fund also warned that companies had responded to ultra-low interest rates and plentiful liquidity by taking on levels of debt that risked becoming a $US19 trillion ($27.7 trillion) timebomb in the event of another global recession.

  • In it's half-yearly update on the state of global financial markets, the IMF said almost 40 per cent of the corporate debt in eight leading countries – the US, China, Japan, Germany, Britain, France, Italy and Spain – would be impossible to service from corporate cash flows if there was a downturn half as serious as that of a decade ago.

  • "The search for yield in a prolonged low-interest-rate environment has led to stretched valuations in risky asset markets around the globe, raising the possibility of sharp, sudden adjustments in financial conditions," the IMF report warns.

http://puzzlefinancialadvice.com.au/2019/AFR/191021_AFR_The_big_sag_Why_investors_have_lost_their_risk_appetite_Views_of_IMF_and_Ray_Dalio.pdf

 

 

 

 

Please reload

Featured Posts

I'm busy working on my blog posts. Watch this space!

Please reload

Recent Posts
Please reload

Archive
Please reload

Search By Tags

I'm busy working on my blog posts. Watch this space!

Please reload

Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Postal Address

PO Box 739

Kenmore, Queensland

Australia

Call

T: 07 3202 6044

M: 0434 905 885