Blue Chip Companies Ramp Up Borrowing After Promising Austerity

The video discusses the trends in investment grade borrowing, highlighting that overall leverage remains unchanged despite some companies reducing debt. It explores the role of central banks and market conditions that encourage borrowing. Concerns about potential economic downturns and rising interest rates are addressed, along with examples of companies like GE and AT&T successfully reducing debt through various strategies.

What is the current state of leverage in the investment grade index?

• It has significantly increased.

• It has significantly decreased.

• It has remained broadly unchanged.

• It has fluctuated wildly.

Which companies are mentioned as actively deleveraging?

• Apple, Microsoft, and Google

• AT&T, GE, and ABN Bev

• Tesla, Amazon, and Facebook

• Coca-Cola, Pepsi, and Nestle

Why are companies continuing to borrow despite previous concerns?

• Because interest rates are extremely high.

• Due to favorable borrowing conditions and investor willingness to lend.

• Because they have no other financial options.

• Due to government mandates.

What strategies have companies used to reduce their debt?

• Raising product prices

• Expanding into new markets

• Cutting dividends and selling assets

• Increasing employee salaries

Which company is noted for using asset sales to manage debt?

• GE

• AT&T

• Tesla

• Apple