Decade of Debt: Has the Decade of Easy Money Translated into Success?

With interest rates locked in at rock-bottom levels courtesy of the Federal Reserve’s easy-money policy after the financial crisis, companies found it cheaper than ever to tap the corporate bond market to load up on cash. 

Bond issuance by American companies topped $1 trillion in each year of the decade that began on Jan. 1, 2010, and ends on Tuesday at midnight, an unmatched run, according to SIFMA, the securities industry trade group. 

In all, corporate bond debt outstanding rocketed more than 50% and will soon top $10 trillion, versus about $6 trillion at the end of the previous decade. The largest U.S. companies – those in the S&P 500 Index .SPX – account for roughly 70% of that, nearly $7 trillion.

Read More here: https://www.reuters.com/article/us-global-markets-decade-credit-idUSKBN1YY09Y

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *