Monday, November 5, 2018

GE's Debt Problems.

GE's debt-riddled balance sheet already forced out its CEO, led the storied company to slash its cherished dividend to a penny and prompted the sale of century-old businesses.

Now, GE's mountain of debt, caused by years of poorly-timed acquisitions and bad decisions, is forcing the company to wean itself off the $1.1 trillion commercial paper market in favor of more expensive bank financing.

It's an abrupt shift because GE (GE) was long one of the biggest issuers of commercial paper, a form of cheap short-term borrowing that businesses rely on to pay employees and finance inventories. Recall that GE was severely hurt when the commercial paper market froze during the 2008 financial crisis. Eventually the Federal Reserve stepped in with a rescue.

Read the full article at CNN Business.
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