Corporate debt bubble

A corporate debt bubble refers to a situation where there is an excessive accumulation of debt by companies, often driven by easy access to financing, low interest rates, and investor demand for yield. In such a bubble, corporations may take on more debt than they can sustainably manage, leading to potential financial instability. Key characteristics of a corporate debt bubble include: 1. **Low Interest Rates**: When interest rates are low, borrowing costs decrease, encouraging companies to take on more debt.