Bank of Canada warns of corporate debt risks
Annual financial system report notes growing corporate debt in extractive industries
The Bank of Canada has said that rising corporate debt among Canadian firms may make them vulnerable to changes in market sentiment.
The central bank’s annual Financial system review for 2019 reports progress on the current main vulnerabilities, the elevated levels of household debt and the housing market.
The growing level in corporate debt “has been concentrated in lower-rated firms”, said governor Stephen Poloz as he presented the review: “Investor appetite for high-yield bonds and
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