Borrowing costs

Rising borrowing costs “could be the last straw for ailing businesses”

While the economic impact of last week’s interest rate hike on businesses is likely minimal, the uptrend portends trouble, predicts Richard Churchill, partner at Blick Rothenberg tax and consulting firm. . “Although interest rates are still exceptionally low at 0.25%, the message he sends to business owners is a clear message that further interest rate […]

Borrowing costs

Borrowing costs for states are lowest since April

The yield on the G-Sec fell as a result of falling US Treasury yields and easing oil prices in the international market. Currently, the benchmark bond yield 6.10% -2031 is trading at 6.3657%. By Manish M. Suvarna The weighted average cost of borrowing on state development loans (SDLs), across states and tenure fell this week […]

Borrowing costs

UN launches African repo market to lower borrowing costs

The UN has launched a new short-term lending market for African bonds in a move it says could cut borrowing costs for governments across the continent by billions of dollars. The Liquidity and Sustainability Facility (LSF) will allow investors to use African debt issued in foreign currencies such as the dollar and the euro in […]

Borrowing costs

Reserve Bank raises borrowing costs and warns more are to come

New Zealand’s central bank has outpaced almost all developed economies in raising rates despite delta vagaries, writes Justin Giovannetti in The Bulletin. The cost of borrowing is rising for the first time in seven years. The Reserve Bank yesterday raised the official cash rate from a record high of 0.25% to 0.5%, a move widely […]

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

REITs cut borrowing costs by around 200 basis points or more in FY21

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. […]

Borrowing costs

‘Painful’ downgrades will increase South Africa’s borrowing costs, minister says

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 […]

Borrowing rates

BSP cuts lending rates to new all-time low of 2%

Metro Manila (CNN Philippines, November 19) – The Bangko Sentral ng Pilipinas on Thursday triggered another drop in interest rates to an all-time low of 2%, hoping that lower borrowing costs will support an economic rebound. The Monetary Board cut the policy rate by 25 basis points, now the lowest on record as the Philippine […]

Borrowing costs

U.S. businesses are less able to service their debt even with record borrowing costs

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 […]

Borrowing costs

Alphabet locks borrowing costs at record high in $ 10 billion deal

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 […]

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 […]