Thursday 10, May 2012 by Robin Amlôt
The Credit Overhang: Is A $46 Trillion Perfect Storm Brewing?
A formidable wall of debt maturities and new money requirements over the next five years or so (which Standard & Poor's estimate at $43 trillion to $46 trillion), along with a volatile geopolitical climate that is causing skittishness in financial markets, poses downside risk of a perfect storm for global credit markets. Notwithstanding this downside risk, S&P’s current view is that most nonfinancial corporate debt issuers will be able to continue to manage their forthcoming refinancings, although credit rationing may constrain new term bank financing to fund growth.
