WEB Notes: Every year we see record debt from companies. Not to mention Americans and our own government. In fact, the U.S. Government is about to hit a new debt mile stone.
Nevertheless, Corporate America continues to add to its bottom line. Where we have seen the rich become far richer this year during a year of economic downturn. If that is not backward, I do not know what is. In reality, all that COVID stimulus money went right back to the big boys.
U.S. corporations now owe a record $10.5 trillion to creditors, either in the form of bonds or loans, a stunning 30-fold increase from a half-century ago, according to a new BofA Global Research report.
By far, the biggest chuck of debt has been taken out by American companies with high “investment-grade” credit ratings of AAA to BBB, a segment of the market where borrowing has more than doubled in the past decade to roughly $7.2 trillion.
Source: Market Watch