Excess savings and debt leverage

The world is increasingly in a situation of ( ex ante ) excess savings. The result has been: A sharp decline in risk-free interest rates; A squeezing of risk premia on risky bonds; But not a fall in the cost of share capital, of equity. This has created a considerable bias in favour of debt financing and to the detriment of share financing (more broadly in equity), and explains the increase in debt leverage and share buybacks. This distortion related to the expansionary monetary policies and the inertia of the cost of capital in equity is serious .