Analysts for Citigroup have advised investors not to take on too much debt during an economic downturn, saying that they would have to pay it back.
Citigroup has become one of the biggest players in the U.S. financial services sector during the crisis, as it helped prop up the creditworthiness of a large number of companies, particularly those with subprime mortgages.
Citi has said that many of its analysts are not in a position to take such a risk, but analysts have said that the debt burden is too great for a single company to default.
The firm’s chief financial officer, Michael Shreeve, has said the firm will be paying back some of its debt.
The analysts have warned that any default would be an embarrassment, according to Reuters.
The analysts said that they could not say how much debt Citi would need to pay back, but noted that the firm had been paying back a significant amount of debt during the recession.
Citi has had a reputation as a high-risk firm for years, particularly during the financial crisis, and its analysts have criticized the firm’s debt-financing practices.
They have argued that a large amount of the firm was not being paid on time and that some of the companies it was trying to prop up were in danger of insolvency.