The Implications of Corporate Tax Reform for IG Credit

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Implications of Tax Reform

David Morse, CFA

David Morse, CFA - Managing Director of Global Credit Strategies & Head of Credit Research

As corporate tax policies begin to take shape, investors should be aware of three key components of Republican-proposed tax reform: a reduction of the federal corporate tax rate, elimination of tax-deductibility of interest expense, and tax repatriation of foreign-held cash. While a separate issue, the proposed Mexico border adjustment tax also merits attention. These key changes, along with each firm’s strategic response, could have positive or negative impact on the credit markets.

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