Morgan Stanley: Around 40% of investment-grade companies now have obligations that are more consistent with junk ratings

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U.S. corporate debt loads reach highest level in a decade
Rising liabilities could make it harder to navigate a downturn
The great deleveraging that was supposed to sweep over corporate America is dead. Or, at least, on hold.

Blue-chip companies have begun to ramp up borrowing again as central banks globally flood economies with money. Liabilities have reached their highest level relative to income since 2009, according to Morgan Stanley’s analysis of second-quarter data. The number of companies selling investment-grade debt this month through Thursday has surged 63% from the same period last year.


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