Firms Hoard Cash as Credit Markets Watch ECB’s Next Move

Bloomberg Quint | Sep 7, 2021 at 3:05 PM
  • Europe Inc. has never had more cash in the bank, boosting investor confidence that corporate debt markets can weather rainy days caused by the spread of Covid-19 variants or the scaling back of central bank stimulus.
  • Deposits of non-financial companies in the euro area ended July at a record high of 3.2 trillion euros ($3.8 trillion).
  • The size of the cash cushion is a big reason for the calm seen in high-grade credit markets, even as traders become increasingly watchful for signs for when ECB policy makers, who meet on Thursday, will start to wind down stimulus.