Key issues

US: end of cycle and long-term outlook

The vulnerabilities of corporate debt in the face of a historic shock

• The paralysis of economic activity will lead to a fall in global GDP not seen since 1930. Are there latent financial fragilities that could amplify this decline? • In a more demanding financial environment, the high levels of debt will be put to the test, its quality will deteriorate and mechanisms that amplify economic stress could be activated due to the interconnections that exist between different assets. • In the face of these risks, economic policy has reacted quickly and decisively, especially on the part of the central banks,...