The prime corporate borrowing rate has averaged around 3.00% for the past 10 years. As the Bank of Canada aggressively tries to taper inflation, rates look to effectively double by year end from the past pre-covid era. Firms must budget for increased interest costs and adapt.
Over the past 30 years, corporations have built complicated ‘Just-In-Time’ systems. The current real time integration of manufacturing, inventory, labor, and capital has begun to show signs of strain.
Most lenders have had to stretch usual lending terms to gain more business.
M&A will be a preferred strategic option as companies look to accelerate growth in the post-pandemic world.
In this issue, we connect the dots on current events that surround that precious commodity which frequently seems to be in short supply: trust.
As we look towards a 2021 recovery, it's still a good bet to have a contingency plan, just don't bet against your own team...