BIS central bankers’ speeches  5  We face however a circular problem in the euro area: we need higher potential growth to work through the debt overhang so that firms can being investing again; but that investment is itself necessary to raise potential growth.
A favourable economic environment together with the persistently low cost of issuing corporate sector debt and greater investor appetite for lower quality credit have created conditions that have been conducive to a surge in global merger and acquisition (M&A) activity [see chart on the left of slide 8], and in particular of leveraged buy-outs (LBOs).