Stress Testing the Corporate Debt Servicing Capacity: A Scenario Analysis
Posted: 20 May 2024
Date Written: May, 2024
Abstract
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.
Suggested Citation: Suggested Citation
Kadyrzhanova, Dalida and Perez-Orive, Ander and Singer, Eliezer, Stress Testing the Corporate Debt Servicing Capacity: A Scenario Analysis (May, 2024). FEDS Notes No. 2024-05-09, Available at SSRN: https://ssrn.com/abstract=4833267 or http://dx.doi.org/10.17016/2380-7172.3481
Dalida Kadyrzhanova (Contact Author)
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
Ander Perez-Orive
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
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