Global Capital Fight Threatens as Refi Bubble Looms: CFO Study

Deloitte survey of 1,000 finance execs sees intensifying debt picture, with economic pressures on CFOs of leveraged firms to "convince boards and CEOs to recapitalize."

By Roy Harris

In other findings, the study determined that, even with $9 trillion in cash reserves across the 9,000 large companies examined, those reserves are unevenly distributed, and are mainly found in the financial services industry, with only about $2 trillion of cash outside  financial institutions. Most of the maturing debt is found in the Americas, with $5.7 trillion of the $11.5 trillion total globally. Not surprisingly, Asia has the lowest debt level -- although the highest share of outstanding debt matruing, with 69% set to mature in the next five years.

CFO surveys have been showing recently that 62% of finance chiefs plan to maintain or increase their debt levels over the next three years, Deloitte said, and half plan to use cash reserves to pay down debt.