Top Ibex companies continue to deleverage

Industrial companies listed on the Ibex trimmed their debt by 174 billion euros in 2013, which is 10.62% more than the year before. Companies deleveraged mostly through stock sales. These were necessary to get cash as lenders were shy to create loans.

Still, growing confidence and a dropping risk premium provide a chance to issue corporate bonds and get cheap financing. This option was not possible last year. With the biggest companies tightening their belts, they will continue to clean up their balance sheets. We have come a long way since these companies had 570 billion euros of debt in 2009, and hopes are high that the debt will continue to shrink in coming years.