Report
Patrick Artus

Could US growth slow due to a corporate financing problem?

Because interest rates remain low in the United States, due to the low level of inflation, it is hard to imagine a fall in asset prices or a public or private debt crisis. However, many economists believe a slowdown in US growth could result from financing problems among companies and the ensuing fall in their investment capacity. We look for signs of such problems in: Federal Reserve surveys; T he t rend in business loans and in corporate bond issuance; The risk premia paid by companies; The level of corporate investment; The trend in corporate credit ratings . Do US companies need to borrow in order to invest? Altogether, we see a slowdown in investment and in bond issuance by US companies, which does not seem to be due to a financing problem or to a deterioration in creditworthiness.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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