The Rapid Growth of Global Corporate Debt

The video discusses the global increase in debt since 2008, highlighting the significant growth in both government and corporate debt. China is noted for its substantial rise in corporate debt, which poses policy challenges for maintaining economic growth. The shift from bank loans to capital markets is examined, along with the associated risks of declining credit quality in the bond market.

Which country has significantly increased its corporate debt, making it a standout in global debt growth?

• India

• Germany

• China

• United States

What is the main challenge for China in managing its high levels of corporate debt?

• Reducing government spending

• Balancing debt reduction with economic growth targets

• Increasing foreign investments

• Improving export rates

What trend has been observed in the shift of financial risk from banks to another sector?

• From banks to capital markets

• From banks to insurance companies

• From banks to technology firms

• From banks to real estate

What has been a significant consequence of low interest rates on corporate bonds in the US?

• Decreased corporate debt

• More companies with weaker credit ratings borrowing

• Higher credit quality

• Increased government debt

What is the largest chunk of investment-grade debt in the US according to S&P?

• Triple B

• Triple A

• Double A

• Single A