Janus Henderson Report: Analysts Predict An Increase In The Total Debt Of The World'S Companies By $1 Trillion In 2020
Companies around the world may increase their corporate debt by up to $1 trillion in 2020 as they try to strengthen their financial position in the face of the coronavirus pandemic, according to an analytical report by financial holding company Janus Henderson.
"COVID changed everything. Now it's about preserving capital and creating a strengthened balance sheet," said Manager Janus Henderson, who prepared the analysis for the new corporate debt index based on a study of data from 900 of the world's leading firms.
According to calculations by Janus Henderson, the unprecedented growth will lead to total global corporate debt rising by 12% to about $9.3 trillion.
Last year also saw a sharp 8% increase, driven by mergers and acquisitions, as well as borrowing by firms to finance share buybacks and dividends.