BDO Capital Q1 2021 Debt Market Update

Corporate America levered up in 2020 as the COVID-19 pandemic threatened businesses, but companies seem to be in no hurry to reduce the buildup of debt even as cash builds. While borrowing was necessary in the early days of the pandemic to cover operating expenses, experts say paying down debt will likely be a lower priority to mergers and acquisitions, capital expenditures and shareholder returns as borrowing costs remain low with support from the Federal Reserve.