Lowest-Rated US Corporate Bond Yields Rise More Than 4 Percentage Points This Year
JH Kim
Summary
- It said yields on the lowest-rated corporate bonds in the US have risen by more than 4 percentage points this year.
- It said the widening in credit spreads is pushing up both borrowing costs for lower-rated companies and the interest rates they must pay when issuing corporate bonds.
- It said the pressure of higher funding costs from wider spreads is increasing, especially for companies with weaker credit profiles.
Forecast Trend Report by Period
Yields on the lowest-rated US corporate bonds have risen by more than 4 percentage points this year, increasing borrowing costs for companies.
Cointelegraph, a crypto-focused media outlet, reported on Oct. 6 that yields on low-rated US corporate bonds have climbed more than 4 percentage points since the start of the year.
As credit spreads widen, the rates lower-rated companies must pay to issue corporate bonds are also rising.
The pressure on funding costs is especially intense for companies with weaker credit profiles.
JH Kim
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