{"id":193249,"date":"2010-01-18T05:57:00","date_gmt":"2010-01-18T10:57:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/corporate-borrowing-costs-rise-hit-highest-level-since-november-2010-1"},"modified":"2010-01-18T05:57:00","modified_gmt":"2010-01-18T10:57:00","slug":"corporate-borrowing-costs-rise-hit-highest-level-since-november","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/193249","title":{"rendered":"Corporate Borrowing Costs Rise, Hit Highest Level Since November"},"content":{"rendered":"<p>Corporations have been issuing new debt at an epic pace, and it appears buyers are feeling a bit stuffed.<\/p>\n<p>The spread between <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=azJmr774VjI0&amp;pos=1\">corporate and government borrowing costs<\/a> is now 193 basis points, the highest level since the end of November, according to Bloomberg. Note that this is a fraught time for many governments, so government borrowing costs are already at elevated levels.<\/p>\n<p>Interesting, this move is the opposite of what PIMCO has been calling for. The famous bond firm called for a shift into corporates at the beginning of the year, arguing that for reasons of relative supply, spreads would narrow. It&#8217;s early, but obviously that hasn&#8217;t happened.<\/p>\n<h2><a href=\"http:\/\/www.businessinsider.com\/pimco-how-the-governments-huge-debt-binge-means-corporates-will-rule-in-2010-2010-1\/this-improvement-in-corporate-credit-fundamentals-has-materially-improved-the-outlook-for-default-risk-particularly-in-the-high-yield-market-and-increased-balance-sheet-strength-and-financial-flexibility-for-corporations-1\"><strong>Read PIMCO&#8217;s full argument here &#8212; &gt;<\/strong><\/a><\/h2>\n<p><a href=\"http:\/\/www.businessinsider.com\/corporate-borrowing-costs-rise-hit-highest-level-since-november-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/expecting-clear-skies-the-herd-will-pour-into-junk-bonds-next-year-2009-12\">The Junk Bond Rally Is Moral Hazard In All Its Glory, And Will Continue Next Year<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-how-the-governments-huge-debt-binge-means-corporates-will-rule-in-2010-2010-1\">PIMCO: How The Government&#8217;s Huge Debt Binge Means Corporates Will Rule In 2010<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/company-issues-bonds-even-though-it-doesnt-need-money-2009-11\">Company Issues Bonds Even Though It Doesn&#8217;t Need Money<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/K8c6u_ojco4\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Corporations have been issuing new debt at an epic pace, and it appears buyers are feeling a bit stuffed. The spread between corporate and government borrowing costs is now 193 basis points, the highest level since the end of November, according to Bloomberg. Note that this is a fraught time for many governments, so government [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-193249","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/193249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=193249"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/193249\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=193249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=193249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=193249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}