Expansion, diversification, growth: these things cost money. After the global financial crisis of 2007-2009, there was a universal imperative to get out of debt. The opposite happened. Central banks around the world have cut interest rates to historic lows to stimulate economies, and companies that have borrowed for years to stay in business, refinance debt or buy back their own stock are once again forced to borrow. We are borrowing money.
What was the amount of their loan? Non-financial corporate debt rose from 75% of total global gross domestic product (GDP) in 2007 to 98% (counted as debt) last year, according to the Institute of International Finance (IIF) and S&P Global. Together, governments, households, and financial companies have brought total global debt to a record $300 trillion, equivalent to 349% of gross domestic product).
The side effects of money becoming too cheap or too expensive to borrow can be devastating, but not all debt deserves a bad reputation. Loans and bonds can be effectively used to increase investment, employment, and productivity. Furthermore, the absolute level of debt, even if it is undesirable, does not automatically increase the risk of default in the same way. Indeed, small and medium-sized enterprises are more likely to experience liquidity constraints than large enterprises, and some sectors of the economy may be more vulnerable than others. And while today, even in these uncertain times, the majority of the world’s largest corporate borrowers can largely rely on debt repayments, past economic downturns have left many giants with a fast track record.
Look at the top 5 indebted companies in the world in 2024 –
5. BNP Paribas
Debt total: $403.36 billion
As of 2024, BNP Paribas is one of the five most indebted companies worldwide. It is one of the biggest banks in the world, providing people, businesses, and organizations with a wide range of financial services.
4. JPMorgan Chase & Co. (NYSE:JPM)
Total Debt – $43.653 billion
JPMorgan Chase & Co. (NYSE:JPM) is one of America’s leading multinational banking and financial services companies. One of the. One of the reasons for JPMorgan Chase & Co.’s (NYSE:JPM) high level of debt is the company’s strategic growth through various acquisitions and mergers, which often use debt to finance the company.
3. NYSE:PAM, Pampa Energía S.A.
Debt total: $578.51 billion
Pampa Energía S.A. (NYSE:PAM) holds a position in the top three globally in terms of debt. With a substantial presence in the value chains for gas and oil, as well as electricity, it is the biggest independent energy firm in Argentina. One of the factors contributing to Pampa Energía S.A.’s (NYSE:PAM) high debt levels is its involvement in capital-intensive energy sectors, including oil and gas exploration.
2. Federal Home Loan Mortgage Corp (OTCMKTS:FMCC)
Debt total: $3,214 T
The Federal Home Loan Mortgage Corporation ranks second on the list of the world’s 25 most indebted companies in 2024. Its core business is buying mortgages from lenders to provide liquidity to the real estate market. This activity requires large amounts of capital, which can lead to debt for the company.
1. Federal National Mortgage Association (OTCMKTS:FNMA)
Debt total: $4.222 T
In terms of global debt as of 2024, Federal National Mortgage Association (OTCMKTS:FNMA) is at the top of the list. It is a government-sponsored company that, by supplying the mortgage market with liquidity, is essential to the US housing market. Buying and guaranteeing mortgages from lenders is its main duty, which adds to the company’s debt and necessitates significant capital.
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