sg hammer

Another $700B in corporate loans comes due this year. So what does this mean for the many companies that were counting on borrowing more money to kick their debt farther down the road.

The best way to encourage participants to reenter the corporate markets is the provide tax incentives to purchase corporate debt. We could, for the next few years, eliminate the income tax on interest paid on corporate notes. It's the uncertainty on being able to roll this debt that has investors like me, who would normally purchase 2-3 year A or better corporate notes, staying away. It's not so much the ability to repay debt as it is the ability to refund this debt which is a function of market demand. Give me a tax break on the interest and players will reenter the market.