The current financing landscape is challenging, with inflation and geopolitical tensions contributing to an unpredictable financial policy climate. Companies facing the need for urgent investments in infrastructure or seeking to restructure for sustainability must be especially persuasive to attract debt capital from investors and banks. Corporate debt for many companies has reached high levels, prompting a heightened need for borrowing through loans and securities to address cash flow and manage refinancing needs. These companies are turning to both short-term loans and securities issuance to secure liquidity, especially as interest rates remain relatively high, increasing costs for new debt and refinancing efforts. For instance, speculative-grade companies, in particular, face a projected peak in debt maturities by 2028, as an estimated $2.8 trillion in debt comes due globally, escalating the urgency for accessible refinancing options as stated in a report by S&P Global.
Adding to the urgency, firms are navigating volatile economic conditions, marked by fluctuating asset values and a cautious investment climate, making the refinancing of existing debt challenging. Corporate debt advisory, from a banking perspective, plays a critical role in guiding companies through complex financing decisions. Banks act as trusted advisors, helping corporations structure and manage debt to support growth, optimize capital structures, and mitigate financial risks. By leveraging market insights and financial modeling, banks provide tailored solutions, often recommending options like syndicated loans, bonds, or hybrid instruments, based on a corporation’s specific needs and risk appetite. Effective corporate debt advisory aids in maintaining balance sheet health and improving companies’ creditworthiness, which can contribute to more favorable financing terms (Aldridge & Macey, 2020).
The Debt Advisory Summit by Trueventus provides corporate companies presentations from leading industry experts on today’s economic environment and financial burden that is affecting all companies. Join us and discuss current trends in the debt market, including interest rates, lending practices, and economic indicators. Attending this event equip corporate company management with the tools and knowledge necessary to make informed decisions about debt management and advisory services.