Dubai - Arabstoday
Global debts worth $8 trillion (Dh29 trillion) are expected to mature in less than four years, according to a report. Australia, Canada, Japan, and New Zealand have nearly $1.1 trillion in debt maturing through 2015 while nearly $4 trillion of European corporate debt will mature through 2015. \"We estimate that about $8 trillion in debt will mature from the second quarter of 2011 through the end of 2015. In 2011, about $1.4 trillion in debt will come due,\" said Diane Vazza, head of Standard & Poor\'s Global Fixed Income Research. \"In 2012, more than $2 trillion of corporate debt will mature, $1.8 trillion in 2013, almost $2 trillion in 2014, and $1.6 trillion in 2015.\" The amount of maturing debt will increase significantly and demand for corporate debt might not remain as strong given the sluggish economic recovery due to rising interest rates, and sovereign debt problems in parts of Europe and instability in the Middle East, Standard and Poors said in a report released yesterday. Article continues below Robust activity \"We generally expect that the markets can handle this amount given the robust new issuance activity so far this year,\" said Vazza. Despite these factors, a BofA Merrill Lynch Survey shows that the global economic outlook remains positive. \"Our question about QE3 [third round of US quantitative easing] this month shows that investors don\'t want policy makers to panic now, but many expect the Fed to apply QE3 if the S&P 500 falls below 1,100,\" said Michael Hartnett, chief Global Equity strategist at BofA Merrill Lynch Global Research. Fears over sovereign debt have fuelled the highest level of European economic pessimism since depths of the credit crisis. \"Investors have acted decisively in response to recent developments in EU sovereign funding. The question is whether eurozone equities have been oversold,\" said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.