Daily Management Review

$1 trillion increase in debt forecasted for companies around the world in 2020


Companies around the world may increase corporate debt to $ 1 trillion in 2020, trying to strengthen their financial situation in the context of the coronavirus pandemic, according to an analytical report by financial holding company Janus Henderson.

“COVID has changed everything. Now it’s about preserving capital and creating a stronger balance,” said a manager at Janus Henderson, who prepared an analysis for the new corporate debt index based on data from 900 of the world's leading firms.

According to the analyst’s estimates, unprecedented growth will lead to the fact that total global corporate debt will grow by 12% and amount to about $ 9.3 trillion.

Last year, there was also a sharp increase of 8%, due to mergers and acquisitions, as well as borrowing by firms to finance the repurchase of shares and dividends.

source: janushenderson.com