โWorrying Timesโ for Bonds as 10-Year Yield Nears 5%
Higher borrowing costs also threaten the stock rally.
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Higher borrowing costs also threaten the stock rally.
Companies are flocking to the US leveraged loan market with offerings to reprice large chunks of existing debt, tapping strong investor demand to reduce borrowing costs.
A 10-year US Treasury yield of 5.5% represents the threshold at which higher borrowing costs would overwhelm earnings growth and begin to pressure equity valuations, according to Alain Bokobza, head of global asset allocation at Societe Generale SA.
Japanese companies are expanding their toolkit to deal with the steepest borrowing costs in a generation, including considering sales of strategic shareholdings and other assets to offset the impact, a Bloomberg News survey shows.