The last two times this happened, a downturn was around the corner

From JPMorgan’s Mislav Matejka:

The current deterioration in the credit market is particularly worrying at a time when corporates are becoming more and more dependent on external sources of liquidity. The US corporate financing gap — the difference between cash flow generation and spending on capex and dividends — has turned strongly negative. In the past, when the financing gap went strongly negative, the next downturn was just around the corner.

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