Capital Markets in 2030: The future of equity capital markets

Global capital markets reached new post–financial crisis highs in 2018. This expansion was largely driven by the US economy. Companies now have to consider a growing range of issues that may affect the shape of future capital market activity, such as an increasing focus by regulators and investors on sustainability and governance, and mounting concerns around deglobalisation, rising populism and greater geopolitical risks.

Smoothing out the fluctuations of working capital

The task is particularly timely at the present point in the economic cycle. Led by the US Federal Reserve, central banks are tightening monetary policy and increasing interest rates. As a result, companies will need to put idle cash to work and manage their debt levels accordingly. Payables and receivables, which make up over half of working capital figures on average, as well as cash conversion cycles, are bound to become top of mind for finance functions dealing with increasingly complex global supply chains.

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