Debt issued to fund mergers and acquisitions has reached a record high, as companies look to take advantage of cheap financing ahead of a rise in US interest rates.
The debt financing surge comes as mature companies face a growth challenge, given meagre revenue expansion. Earnings for S&P 500 companies are on track for their worst performance since the second quarter of 2009, under pressure from a strong dollar and a slowdown in China’s economy that has also weighed on commodity prices.
Low borrowing costs, driven down by central banks’ quantitative easing programmes, provide an opportunity to create a return for shareholders via debt-financed mergers and acquisitions, as well as share buybacks.
您已閱讀40%（702字），剩餘60%（1038字）包含更多重要資訊，訂閱以繼續探索完整內容，並享受更多專屬服務。