The European Central Bank will not be able to protect governments from higher borrowing costs if inflation spikes, Bundesbank President Jens Weidmann warned in an interview published on Sunday. “The ECB is not there to deal with the security of the solvency of the States”, declared the head of the German central bank. said Welt […]
Cash-strapped states continue to pay more for market borrowing, being forced to offer yields close to 7% even as the system is awash with liquidity amid benign interest rates, report says . The six states that went to market to auction state government securities on Monday to raise 8,700 crore rupees had […]
Diving Brief: Companies with less than stellar credit ratings are benefiting from cheap borrowing rates thanks to investors’ growing appetite for risk and continued pandemic-related credit downgrades from some large-cap companies. The spread between junk corporate bonds and Treasuries in the Bloomberg Barclays US High Yield Corporate Bond Index has narrowed since late last year […]
MUMBAI: Despite the liquidity injection of Rs 10,000 crore via the G-Sap route by the RBI last week and fewer states tapping bond markets, their cost of borrowing has headed north, the coupon having reached its highest level since mid-March at 7 percent. With that, weighted average government bond yields have risen 44 basis points […]
Real estate investment trusts (REITs) reduced their borrowing costs by around 200 basis points (bps) or more in FY21 due to their strong credit profiles and better ratings. By comparison, major property developers such as Godrej Properties and DLF’s rental arm reduced their borrowing costs in FY21 by 110bps and 145bps, respectively. […]
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The Federal Reserve Building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid Join now for FREE unlimited access to Reuters.com Register WASHINGTON, June 16 (Reuters) – The White House said on Wednesday it did not expect the Federal Reserve’s projections for post-pandemic interest rate hikes to significantly alter its own […]
Sales of houses in Turkey plunged to a five-month low in May, hurt by high borrowing costs and the pandemic. The data of the Turkish Statistical Institute (TurkStat) show that 59,166 residential properties were sold last month, compared to 95,863 in April. On an annual basis, May figures are up 16.2%, although last year’s figures […]
The Reserve Bank of India (RBI) on Friday said it intended to keep borrowing costs low for government and businesses by buying more bonds in the market, although it left policy interest rates unchanged and policy direction to heal a fragile economy. a global commodity price spiral. Growth forecasts for FY22 were revised down one […]
With large borrowing states not coming to the market or taking less than the amounts indicated, the states are finally seeing the cost of their debt fall, with the weighted average interest rate falling by 18 basis points to 6.74 at the time of the sale. at the state securities auction on Monday. . Last […]
If the resurgence of coronavirus infections gives a sense of deja vu, so does the yield curve in the bond market. Despite unprecedented policy measures over the past year, corporate financing costs have started to rise again. Corporate bond yields rose across the curve, the fallout from tighter government bond yields and an increase in […]
FILE PHOTO: European Central Bank (ECB) Vice-President Luis de Guindos makes a statement during the second day of the informal meeting of EU economy and finance ministers in Berlin, Germany , September 12, 2020. Odd Andersen/Pool via Reuters FRANKFURT (Reuters) – The European Central Bank will act on a “damaging” rise in borrowing costs and […]
Studies in this week Overview of the Hutchins to find corporate borrowing costs rise with the value of the dollar, Black women have died of COVID at disproportionate ratesand more. Want to receive the Hutchins Roundup by email? Sign up here to receive it in your inbox every Thursday. The ups and downs of the […]
How will the Fed deal with rising US borrowing costs? The minutes of the Federal Reserve’s latest monetary policy meeting will be released on Wednesday, giving investors a more in-depth look at the ongoing debates at the central bank over the path of the economic recovery and the recent rise in borrowing costs. in the […]
Bombay : State government borrowing costs fell more than 30 basis points at Tuesday’s State Development Loan (SDL) auction, a day after the Reserve Bank of India (RBI) canceled an auction of central government bonds which was to be the last of the financial year. Up to 15 state governments have raised ₹17,783 crore on […]
Investors are snapping up loans from low-rated companies, fueling a rally that is driving down borrowing costs for highly indebted companies. Investors poured more than $8 billion into so-called leveraged loan funds in January and February, according to data from Refinitiv’s Lipper – the most in more than two years and a notable reversal from […]
Borrowing costs for Indian companies have climbed about 50 basis points in the past month as credit growth begins to pick up with the end of the financial year. According to bankers, corporate bond yields for 5-year public sector corporate paper are now trading at around 6%, up around 50-60 basis points from pre-budget […]
Investors are turning away from tech stocks that fueled a decade-long surge in equities as rising borrowing costs and a recovering U.S. economy encourage a shift from the dominant growth trading strategy to value stocks. The S&P 500 Value Index – made up of the top 100 S&P 500 stocks judged to be the cheapest […]
ISTANBUL (Reuters) – Turkey’s parliament this week approved regulations governing the interest-free housing finance market, paving the way for a possible boom in a system that has already attracted around 300,000 customers eager to avoid high rates. exorbitant interest. FILE PHOTO: Commercial and residential buildings are seen in Sisli district as the outbreak of the […]
It’s never been cheaper for companies with ‘junk’ credit ratings to borrow money in the US as investors’ voracious appetite for riskier debt drives interest rates down paid on recent bond transactions at record highs. Health insurance company Centene Corporation became the latest junk-rated issuer to guarantee a cost of borrowing below 3% this week, […]
Too much money for too few assets creates strange phenomena at the heart of European financial markets. A striking example: some companies and most banks can now borrow at rates lower – and even below zero – than the rate set by the European Central Bank. Italy’s Enel SpA, one of Europe’s largest power producers, […]
Mumbai | NEW DELHI: The Indian government is confident it can secure funds for its massive 2021/22 borrowing program at less than 6.0% as the central bank has given assurances that it will provide ample liquidity, two senior officials told Reuters. Bond yields jumped on Friday after the central bank’s policy meeting amid investor concerns […]
The riskiest companies in the world are reaping the benefits of the global search for higher returns, sending the yield on dollar-denominated debt of some of the lower-rated companies close to all-time lows. The average yield on triple-C-rated US debt in the United States fell to a recent nadir of 7.6% this month, approaching its […]
Borrowing costs for companies in the Indian rupee bond market are rising after the country’s central bank unveiled measures to drain the liquidity it had pumped into the financial system to counter the impact of the pandemic. Average BBB-rated three-year rupee bond yields rose 28 basis points this week through Thursday, on track for their […]
JOHANNESBURG (Reuters) – South Africa’s finance ministry said on Saturday that downgrading credit ratings by Moody’s and Fitch would increase the country’s borrowing costs and limit its budget options. FILE PHOTO: South African Finance Minister Tito Mboweni gestures as he delivers his budget speech to parliament in Cape Town, South Africa, February 26, 2020. Reuters […]
Record borrowing costs were not enough to prevent a decline in the ability of U.S. companies to service their debts in the first half of 2020. The median interest coverage ratio of US companies classified as investment grade by S&P Global Ratings fell to 5.48 in the second quarter, from 5.65 in the first quarter […]
Google’s parent company Alphabet blocked some of the lowest borrowing costs on record for a U.S. firm on Monday in a $ 10 billion bond sale that was the largest in a series of opportunistic fundraising operations to start the new month. The debt issuance marked a rare move for Alphabet, which is teeming with […]
British government borrowing costs hit record highs on Friday, underscoring investors’ willingness to fund further economic stimulus measures outlined this week by Chancellor Rishi Sunak. The latest rise in bond prices pushed yields on short-term debt even further below zero. Five-year UK government bond yields fell to minus 0.09%, while two-year yields fell to minus […]
Lower borrowing costs, according to National Savings & Investments, mean that it is increasingly costly for the government to raise funds from savers, raising concerns that its highest savings rates in the market are not reduced. It cost the Treasury-backed bank almost £ 887million more to raise funds from savers between April 2019 and March […]
Amazon blocked some of the lowest borrowing costs ever in the U.S. corporate bond market on Monday, underlining the e-commerce giant’s rise to power during the coronavirus pandemic and the boost the Federal Reserve has given provided thanks to its historic interventions. The company raised $ 10 billion in an offer that included three-year bonds […]
This has been commonplace for some time now, in countries like Germany and Switzerland, but today the UK has been able to join the enviable ranks of those countries that are effectively in a position to charge investors. the right to lend them. A UK government IOU auction – gilts – saw the Debt Management […]
Borrowing costs for businesses around the world are rising sharply despite central bank interest rate cuts, with ratings agencies warning that the economic impact of the coronavirus will lead to a wave of corporate downgrades and defaults. Creditworthiness fears are prompting investors to put their money into the most easily marketable securities — such as […]
If you want to get a feel for real-world activity funded by historically low interest rates, step into the 15-story condo under construction at 77 Charlton Street, New York. Building materials litter the floor where plans show a sleek, open lobby, with a glazed walkway leading out to a 1,600 square foot pool. When completed […]
The legal framework for state failure (as opposed to municipal failure) is uncertain; no state has defaulted on its debt since Arkansas in 1933. In an article titled “Legal Uncertainty and Municipal Bond Yields: Market Spillovers from Puerto Rico”, prepared for the 2019 Municipal Finance Conference in Brookings, Chuck Boyer of l The University of […]
PETALING JAYA: The implementation of IAS 23 Borrowing costs is only a temporary difference in the recognition of borrowing costs and will have no impact on the cash flows of real estate developers, according to AmInvestment Bank which maintained a neutral appeal on the real estate sector. While early rough estimates suggest the new approach […]
African countries are paying the highest average borrowing costs since a massive debt relief campaign wiped out much of what they owed, following a wave of new capital raisings these last years. Payments on external debt – borrowings owed to lenders outside the country – averaged 12% of African governments’ revenues in 2017, according to […]
The era of cheap money is coming to an end, creating a potential problem for some companies that have accumulated a lot of debt. Short-term borrowing costs have skyrocketed this year, in part because of the Federal Reserve’s recent rate hikes. It’s a headache for businesses that need new loans, as well as businesses like […]