Fed: Hidden Leverage in Nonfinancial Corporations
July 28, 2026
July 28, 2026
WASHINGTON, July 28 (TNSRep) -- The Federal Reserve issued the following white paper on July 16, 2026 by Cody Kallen entitled "Hidden Leverage in Nonfinancial Corporations".
Here are excerpts:
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A substantial portion of corporate debt remains hidden from balance sheets. I document two forms of off-balance-sheet leverage in nonfinancial corporations: operating leases (pre-2019) and intraperiod borrowing--short-term debt issued and repaid withi . . .
Here are excerpts:
* * *
A substantial portion of corporate debt remains hidden from balance sheets. I document two forms of off-balance-sheet leverage in nonfinancial corporations: operating leases (pre-2019) and intraperiod borrowing--short-term debt issued and repaid withi . . .