Borrowing costs

Corporate borrowing costs rise as Fed braces for rate hikes

Federal Reserve Board Chairman Jerome Powell is expected to announce several rate hikes throughout 2022 to combat runaway inflation.Source: Getty Images North America Corporate borrowing costs are rising ahead of much-anticipated Federal Reserve interest rate hikes, a potential sign of trouble for companies looking to raise cash in 2022. Healthy corporate balance sheets and expected […]

Borrowing costs

State government borrowing costs rise as yields rise

MUMBAI: State governments are paying a high price for their borrowing as yields rise in money markets. State governments saw their borrowing costs increase by 9 to 14 basis points (100 basis points = 1 percentage point) compared to last month. The RBI had announced that an auction of government bonds (State Development Loans, or […]

Borrowing costs

State Government Borrowing Costs Rise as Yields Rise | Bombay News

Mumbai: State governments are paying a high price for their borrowing as yields rise in money markets. State governments saw their borrowing costs increase by 9 to 14 basis points (100 basis points = 1 percentage point) compared to last month.The RBI had announced that an auction of government bonds (State Development Loans, or SDLs) […]

Borrowing costs

Government borrowing costs hit their highest level in nearly three years

Government borrowing costs hit their highest in nearly three years, with investors betting interest rates will rise again in less than four weeks By Daily Mail City & Finance Reporter Posted: 5:00 p.m. EST, January 7, 2022 | Update: 5:43 p.m. EST, January 7, 2022 Government borrowing costs hit their highest level in nearly three […]

Borrowing costs

EU borrowing costs rise despite signs of a bond shortage

Eurozone bond yields rose yesterday, following movements in US Treasuries after falling earlier in the session, with a focus on a shortage of debt supply that kept borrowing costs down. block. S Treasury yields stabilized as investors weighed in concerns about the rising rate of Covid-19 infections from the Treasury’s new offer this week and […]

Borrowing costs

Borrowing costs rise as market bets against Lagarde

The price the Irish government would have to pay to borrow in the bond market has reached its highest level since the pandemic began on Friday, amid a change felt across the eurozone. Riday’s financial market moves indicate that investors have started to gauge the likelihood of an ECB interest rate hike within 12 months, […]

Borrowing costs

European Central Bank steps up stimulus to keep borrowing costs low

The European Central Bank acted on Thursday to counter market forces driving up borrowing costs around the world, saying it would step up its purchases of government and corporate bonds to ensure credit in the euro zone remains cheap. This action signaled that the bank was less worried about inflation and more about the economic […]

Borrowing rates

Lower Mortgage Loans: Some loan rates are actually getting cheaper. But for how long ?

Welcome to Mortgage Rundown, a quick look at what’s happening in Canada’s mortgage rate landscape from a mortgage strategist Robert mclister. Where are these higher rates? Fixed mortgage rates were now supposed to be higher. The popular rhetoric was that a recovery-driven recovery would increase bond yields and mortgage costs by this fall. If you’re […]

Borrowing costs

Covid-19 resurgence increases borrowing costs for travel and leisure businesses

Cruise line Royal Caribbean borrowed $ 1 billion in bond markets on Wednesday, but at a higher yield than a few weeks ago. Photo: Jeff J Mitchell / Getty Images The rapid spread of the Covid-19 Delta variant is increasing borrowing costs for leisure and travel businesses as debt investors recalculate the risks these industries […]

Borrowing costs

State borrowing costs rise as yields hit 7%: report

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 […]

Borrowing costs

Borrowing costs rise again as low bond yields start to climb

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 […]

Borrowing costs

How will the Fed deal with rising US borrowing costs?

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 […]

Borrowing costs

State government borrowing costs drop after G-sec auction canceled

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 […]

Borrowing costs

Junk-Loan Rally Reduces Business Borrowing Costs

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

India Inc’s borrowing costs rise as credit growth accelerates

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 […]

Borrowing costs

Investors turn to value stocks as borrowing costs rise for growth giants

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 […]

Borrowing costs

Influx of cash pushes borrowing costs to unusual levels in Europe

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, […]

Borrowing costs

Indian businesses’ borrowing costs rise due to cash-draining measures

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 […]

Borrowing costs

Corporate treasurers leap on ultra-low borrowing costs

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 […]

Borrowing costs

How Puerto Rico’s Default Has Lowered State Borrowing Costs

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 […]

Borrowing rates

Borrowing rates in bond markets ease

PARIS: Borrowing rates in the euro zone and US bond markets eased yesterday morning after sharp increases in response to clear signs that the US Federal Reserve will begin to reduce its special policy of easy money . The drop in borrowing costs came after several sessions of sharp increases in yields on US and […]