Uptick in M&As likely in 2014: Credit Suisse

CREDIT Suisse expects an acceleration in mergers and acquisitions (M&As) among corporations globally this year, given that European and American firms are under-leveraged by an estimated US$2.3 trillion, when compared to 20-year average leverage levels.

This fervour should filter into Asia, as the banking and insurance sectors are poised for consolidation, Credit Suisse said in a research report this week. The report indicated that a significant number of Western corporations have "abnormally low net debt"; in the US, the proportion of such companies make up 70 per cent of market cap.

This, however, comes with a caveat - that corporate leverage in America may not be as low as touted when credit-market debt is factored in.