Sunday, December 20, 2020

Capital Records: Companies Raise $3.6T from Public Investors in 2020

An unprecedented year keeps surprising. Who would have thought that in the mist of the biggest shock to the global economy in a century, corporations would raise a record amount capital from investors? Data below shows companies were able to raise to a stupendous $3.6T from record issuances of IG ($2.4T), BIG ($426B) debt and secondary stock sales ($538B) on the back of extremely accomodative central bank actions. (IPOs hauled in another $236B)

What does it mean? Success of monetary policies to stave of economic disaster? Or more moral hazard that will cause a bigger crisis down the line? Or both? 

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