Up until the inflation shock of 2022, corporate debt had seen sustained growth around the world for two decades on the back of exceptionally accommodative financial conditions. While inflation has mostly come back down since, the easy monetary policy that preceded it will likely not return. Companies now need to adjust to a new reality of higher costs of debt in an environment characterised by novel macroeconomic uncertainties, and while carrying a significant debt stock that in large part has been used for financial operations rather than to finance real investment.
This session will address the outlook for corporate debt markets, including corporate bond and private credit, potential risks ahead, and the role of financial policy in ensuring debt sustainability and the productive allocation of capital. It will look at how these markets have changed in terms of participants, risk-taking and infrastructure, and what the implications are for market functioning.
This session will address the outlook for corporate debt markets, including corporate bond and private credit, potential risks ahead, and the role of financial policy in ensuring debt sustainability and the productive allocation of capital. It will look at how these markets have changed in terms of participants, risk-taking and infrastructure, and what the implications are for market functioning.
