Current Debt Levels are Excessive

Read More: http://www.cnbc.com/2016/05/20/companies-drowning-in-debt-despite-almost...

From CNBC:

"There's a common misconception that companies are swimming in cash, when they are actually drowning in debt," Chang said in an interview. "Liquidity is not what it appears."

The surge in debt also comes amid rising defaults. The year has seen 72 defaults, up from 39 at the same time in 2015, S&P reported.

For the most part, defaults have been confined to energy-related issues; 29 are from oil and gas, 12 from metals, mining and steel, and one from utilities. S&P expects the default rate to continue to rise, from 3.9 percent of issuers in the past 12 months to 5.2 percent over the next year.