Most UK Corporate Treasurers Believe Debt is Outpacing Profits
The current credit cycle is at a point where debt is outpacing equity according to a poll of the UK corporate treasury community. The poll, taken at this year’s Association of Corporate Treasurers conference in Edinburgh, showed that 54% of treasurers think corporate debt is growing faster than corporate profits. Reports from the conference suggest that it was dominated by talk of the impending credit collapse, with ‘car-crashes’ and ‘bursting bubbles’ featuring in some discussions. However it was also recognised that UK corporate leverage has generally remained at manageable levels and that increasing leverage and improving balance sheet efficiency is one way of raising shareholder value.