U.S. Corporate Debt

Corporate and bank debt have increased as well. U.S. corporate debt rose sharply from $5.66 trillion in 2005 to $8.28 trillion in 2016. Perhaps most troubling is the surge in issuance in emerging market companies. A record $1.13 trillion was issued by emerging market companies in 2014, generally with the goal of expanding production capacity. Yet, with China’s demand waning and consumer demand weak across the developed world, their investments in larger capacity have not paid off.