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.

NOW WATCH: The biggest security mistakes people make when buying things online

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at