Discussion Paper
Stress Testing the Corporate Debt Servicing Capacity: A Scenario Analysis
Kadyrzhanova, Dalida; Pérez-Orive, Ander; Singer, Eliezer (2024-05-09)
The total volume of outstanding debt issued by U.S. nonfinancial firms relative to GDP has increased by about 8 percentage points in the past decade. While a growing volume of debt was largely viewed as benign in the low interest rate environment of the 2010s, the rapid increase in both short- and long-term rates since early 2022 has raised concerns about the debt-servicing capacity of the corporate sector.
FEDS Notes , Paper 2024-05-09