Taking Stock 

Eastern promise – income growth in Asia

Mark Robinson

Eastern promise – income growth in Asia

Dividends paid to holders of UK shares may have hit a record high in the first half of the year, but not everyone was celebrating. Both the Bank of England (BoE) and the European Central Bank (ECB) have warned that the surge in corporate indebtedness since the financial crisis poses a threat to global financial stability, a point worth considering given that some of the borrowing has supported increasingly generous dividend and share buyback programmes. The BoE outlines a scenario in which an increase in interest rates could trigger a large-scale downgrading of corporate bonds, resulting in an unsupportable draw on liquidity.

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