In other words, efficient working capital management means.
It is mainly concerned with the fact that funds are not unnecessarily locked in current assets. With a 2-minute application process, the majority of applicants receive instant credit decisions. That's further tightened financial conditions, raising the risk of corporate debt defaults.Ī credit crunch along with a full-blown recession could result in $1 trillion of corporate defaults, Bank of America estimated. The term working capital management refers to the efforts of the management towards the effective management of current assets and current liabilities. Many of the largest companies are flush with capital raised when interest rates were low and have pushed out the timeline for when their debts come due. Capital on Tap makes business funding and spending simple, saving business owners time and money. It has outpaced other hedge funds in the market, with Bloomberg's credit hedge fund index gaining just 2.2% this year and losing 5% in 2022.Įxperts have warned of trouble in debt markets after banking failures earlier this year caused other regional banks to pull back on lending. The firm's flagship portfolio posted a gain of 4.5% through May, and lost just 3.8% in 2022 as markets broadly swooned, a source said. The firm is especially looking to increase exposure to commercial real estate, a source told Bloomberg, especially as the sector sees defaults and delinquency rates rise amid tighter lending standards, lower property valuations, and higher interest rates. During the first eight months of 1966, the business and government sectors placed heavy demands for funds in the money and capital markets.
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