Does Corporate Debt, or Corporate Debt per GDP actually matters?
There are many companies that are Cash Rich and holding Debt, for example Apple has $100B debt but $200B cash. And due to the way US Tax Multinational companies, most of them have Oversea Cash and they are holding Debt in US borrowing against those cash.
And hence the Risk of those Debt, If they are Cash Rich, then it really isn't much of a problem. Or Earning Per Debt Ratio, if they are any higher than previous era.
Both are far more important than say Interest Rate of Total Debt. A Normal person have $1B Debt might have been shocking, I doubt Bill Gate holding a one billion debt would cause much of a problem.
I dont have any data or answer on hand, so I dont know if those debt are really a problem for now.
I worry a lot more about China's Corporate Debt than US's debt.
There are many companies that are Cash Rich and holding Debt, for example Apple has $100B debt but $200B cash. And due to the way US Tax Multinational companies, most of them have Oversea Cash and they are holding Debt in US borrowing against those cash.
And hence the Risk of those Debt, If they are Cash Rich, then it really isn't much of a problem. Or Earning Per Debt Ratio, if they are any higher than previous era.
Both are far more important than say Interest Rate of Total Debt. A Normal person have $1B Debt might have been shocking, I doubt Bill Gate holding a one billion debt would cause much of a problem.
I dont have any data or answer on hand, so I dont know if those debt are really a problem for now.
I worry a lot more about China's Corporate Debt than US's debt.