Corporate Debt

Debt that is issued by incorporated companies represents the universe of corporate debt. Short-term (less than one year) debt is known as commercial paper, while longer-term debt is issued as bonds. Corporate debt tends to have a higher rate than government debt because of the risk of default. Corporations issue debt for reasons as mundane as to pay their day-to-day bills to reasons as critical as investing in capital projects.


Much has been made about the record amounts of cash that S&P 500 companies and corporations in general are holding onto, but few are talking about the record corporate debt. According to the Federal Reserve, as of March 2012, U.S.…

Big banks in the U.K. jumped on the news that the U.K. central bank would provide billions of pounds of new money to the big banks should Europe’s financial crisis take a turn for the worse. Too bad the rest…

Amongst everyone from the average American to the politicians campaigning in November’s election, one of the ideas often discussed (to get the U.S. economy going) is how to convince corporations to invest the record amounts of cash they have in…

Companies in the U.S., China, Japan, the U.K., and the eurozone will need a staggering $30.0 trillion in new money to refinance corporate debt within the next five years (source: Standard and Poor’s Rating Services). Because of all the problems…

There has been a lot of talk about all the cash U.S. corporations have accumulated since the credit crisis hit in 2008—about $2.0 trillion stashed in corporate America’s bank accounts. From the White House to the average American, encouraging businesses…