NEW YORK, March 9, 2011 /PRNewswire/ — The split between cash-rich businesses and those in need of capital has set the stage for a bifurcated economy, with growing challenges for small- and medium-sized companies, finds the Deloitte study "A Tale of Two Capital Markets."

Based on an analysis of debt in more than 9,000 large companies in the G20, the report summarized the looming global debt picture: competition for capital will intensify as over $11.5 trillion of financing will be due in the next five years, likely limiting the availability of debt capital. This is made all the more challenging by public sector deficits that create significant new competition and volatility in capital markets.

"The credit crisis of 2008 and the volatile post-crisis environment create 'a tale of two capital markets' for businesses today. Capital is now a powerful competitive asset and companies who can raise it quickly have a clear advantage," said Ajit Kambil, global research director of Deloitte's CFO Program. "Not only are we at an inflection point on interest rates, but economic recovery is constrained by a growth in demand within developed economies. For companies with significant leverage, CFOs need to consider moving with urgency to convince boards and CEOs to recapitalize. CFOs with large cash-rich companies should determine when to outline strategies to utilize an organization's strength to raise capital. This can represent a significant competitive advantage for large companies with low leverage over their smaller competitors."

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