September 12, 2023
US companies opt for short-term debt in bet on yields peak
By admin | |
US corporate bond maturities fall to the lowest in a decade. Investment-grade yields are at 6% and near-term bonds yield more than longer-dated bonds. Companies hope that rates will have fallen when they need to refinance. Some investors prefer high yields of shorter-term debt, while long-term investors such as pension funds prefer to lock-in higher rates.