We would like to thank all of those that participated in the survey and contributed to the production of meaningful results.
Q2 2014 Theme – “Conservative”
Leverage growth has always been possible, but is now much easier as the marketplace for the exchange of debt securities and short-term commercial paper continues to loosen and corporate profits rise. SDR’s clients and contacts seem to still be cautious with only 17% of the respondents stating that they are aggressively leveraged. The majority of respondents, 46%, are conservatively using their available credit.
As seen in the real estate market, lenders are offering larger loans in order to obtain business. The real estate credit market is able to continuously be loosened because borrowers are paying off a wave of debt taken out during the real estate bubble. Similarly, with the continuous rise in corporate profits, credit markets have loosened at a steady rate due to the companies’ greater ability to pay off the loans. Our results match the Shared National Credits Program 2013 Review* statistic that states 35.8% of companies say that their available credit is not fully leveraged. *http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20131010a1.pdf