UK: Time for companies to offer debt disclosure

Debt seems a simple concept, yet is widely misunderstood. In a bull market, few question debt - gearing boosts growth. But now, as the economy slows, high borrowings punish companies. Investors urgently need to learn how to assess debt risks. Companies themselves must give clearer disclosure. The credit bubble has not just impacted banks; companies in many other sectors have restructured and re-leveraged. Many consumer businesses, such as retailers, pubs and housebuilders increased borrowings in an effort to accelerate growth in profits. With chief executives typically incentivised on e...