This might be a sensible response to ongoing structural adjustments in the banking sector. But raising debt capital can pose a fresh set of risks because more capital makes enterprises more resilient. In this respect, firms are no different from banks.
As a case in point, the capital ratio of German enterprises has climbed from just under 20% to just shy of 30% in the last ten years, which means that enterprises are more resilient to shocks. The signs of significant overvaluation are less clear-cut in the equity markets than in the bond market. Volatility in these markets is relatively low, however.