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Debt might be the lifeblood of modern capitalism but it also causes heartache. Mispriced US mortgages caused the financial crisis. Excessive borrowing almost unravelled the eurozone. For private investors, it is essential to understand the debt sitting on company balance sheets.
British pubs are now creaking under the burden of heavy borrowing. Take Mitchells & Butlers, owner of chains including Toby Carvery and All Bar One. Net debt borrowings minus cash has reached an ugly 1.7bn including leases. Its shares are worth 800mn less.
This is casting gloom over other, more cheerful developments. Christmas partie…
Read the full article at: https://www.ft.com/content/9c0dc9cc-37ce-4417-81e5-0103d756cbc2