Corporate debt maturity and investment over the business cycle

Poeschl, Johannes

doi:10.1016/j.euroecorev.2022.104348

Cited by 9 publications

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“…The same scenario applied to corporate sector credit, where growth is equal to 2.3%, which suggests a shift in intertemporal trade-off with what could typically be expected if vulnerabilities mounted, making the sector (and system) more sensitive to adverse shocks in the medium term (Figure 1.2.1, panel 4). The more pronounced deterioration in medium-term risks owing to higher corporate sector credit may largely be related to shorter average maturity of debt (around eight years for corporate bonds and syndicated loans outstanding; see also Poeschl 2023) than in the household sector, where 30-year mortgage loans make up a large share of debt. Higher household credit growth may instead lead to risks beyond the medium term (Mian, Sufi, and Verner 2017;Jensen and others 2020).…”

Section: Policy Recommendationsmentioning

confidence: 99%

Global Financial Stability Report, April 2024

2024

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The data and analysis appearing in the Global Financial Stability Report are compiled by IMF staff at the time of publication. Every effort is made to ensure their timeliness, accuracy, and completeness. When errors are discovered, corrections and revisions are incorporated into the digital editions available from the IMF website and on the IMF eLibrary (see below). All substantive changes are listed in the Contents page.

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Section: Policy Recommendationsmentioning

confidence: 99%