Companies race to cut costs as yields fall to 11-year low

摘要

Companies are rushing to decrease their costs to borrow in the US leveraged loan market as yields to tap the asset class fall to an 11-year low. Computer company dell and vegetation management company ASPLUNDH TREE EXPERT cut interest payments to 175bp over Libor, the lowest rate obtained in a year, according to data compiled by Refinitiv LPC. Companies just on the edge of investment-grade are taking advantage of a flood of money rushing into loan funds to reprice their holdings to the tightest levels obtained since February 2020. As interest rates remain near zero and the economy seeks to rebound from the coronavirus pandemic impact, lowering costs can allow companies to increase liquidity or pay down debt.