According to banking and capital markets consultant Mayra Rodriguez Valladares, it’s important that the banks are “well prepared” and “sufficiently liquid” when corporate borrowers rush to draw on their credit facilities.

“That’s where the danger is this time; in the run-up to the [financial] crisis, it was leveraged households, and now it’s leveraged corporations,” Valladares says. “Many of these companies have continued to get more levered… You can expect a cascade of [corporate bond] downgrades.”

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