Financial Times FT.com

Turbulence upsets the balancing act

By Chris Hughes

Published: May 27 2008 01:04 | Last updated: May 27 2008 01:04

It seems finding the right mix of balance sheet efficiency and financial flexibility has never been harder: having come under pressure to take on more debt and run tighter balance sheets during the credit boom, chief financial officers are now expected to hoard cash and even raise fresh equity.

The exploitation of cheap credit by the private equity industry during the boom of 2005 to mid-2007 put the onus on the broader corporate sector to demonstrate that it was using capital efficiently.

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