Energy sector leads first decline in global corporate debt for eight years

JH Corporate Debt index

Global corporate net debt fell by 1.9% to $8.15trn in 2021/22, the first decline in eight years, the Janus Henderson Corporate Debt index has revealed.

In the UK, company debts fell 10% to $521bn, bringing their share of the global pie to 6.4%, the lowest since the index's inception in 2014.  The biggest change was in the energy sector, where oil and gas producers managed to reduce their debt by $155bn, or one-sixth year-on year as a result of skyrocketing energy prices, which also contributed to the sector's dramatic recovery.  Janus Henderson is anticipating a further decline in debt as businesses become more cautious due to rising funding costs and a slowing economy. By this time next year, net debts will have decreased by $270bn ...