After a decade of gorging on cheap money, indebted companies are looking at selling off chunks of their businesses as they fortify their balance sheets for the new era of higher interest rates.
Corporate Debt Becomes Market of Haves, Have-Nots
Investors are quickly dividing corporate borrowers into haves and have-nots. Companies with investment-grade credit ratings are still finding reasonable access to credit, even if at a higher cost. Those with low ratings, meanwhile, are seeing their debt being shunned.
Executives Yank Money From Banks as Some Deposits Look Riskier
Turmoil in the banking industry is leading finance executives to review their companies’ exposure, open new bank accounts and invest excess funds in money market funds or Treasury bills.
S&P Sees Quick Rebound for Corporate Bond Sales Silenced by SVB
Companies’ hesitancy to tap the bond markets following the collapse of Silicon Valley Bank will likely be short-lived, S&P CFO Ewout Steenbergen tells me for Bloomberg News. “When there’s so much market noise, short term, it will absolutely impact the willingness of issuers to go to the market,” Mr. Steenbergen said.
Grab Holdings Retires $600 Million in 2026 Debt With Extra Cash
Grab Holdings Ltd. on Monday said it prepaid $600 million in debt ahead of a 2026 maturity, taking advantage of excess cash on its balance sheet.
Quirky Bond Trade Gives Companies a Way to Cut Borrowing Costs
Companies are taking advantage of price discrepancies in the debt and derivatives markets that give them a way to trim their borrowing costs – enter the 3NC1. Investors eager to take advantage of rising interest rates are buying the debt even if they only earn the extra yield for a year.
Cheniere Energy to Pay Off More Debt with Investment-Grade Score
Cheniere Energy, an operator of liquefied natural gas terminals, plans to extinguish more of its debt after it secured a second investment-grade credit rating, the company’s finance chief told me for Bloomberg News.
With the Easy Money Gone, Executives Tighten Belts by Slashing Dividends
Cutting dividends is a step that finance executives usually try to avoid, as it can prompt investors to move their money elsewhere. But, squeezed by higher interest rates, tighter profit margins and an uncertain economic outlook, some executives are tightening their companies’ belts at the expense of shareholders.
GXO Looks at Selling High-Grade Bonds and Plans to Cut Debt
My first story for Bloomberg News: GXO Logistics is looking to sell bonds to refinance outstanding bank loans while also bringing down its debt levels as interest rates rise.
Hello, Bloomberg!
This was my first week with Bloomberg in New York. Working here has been a dream of mine for many years. I will be leading a team of reporters in the Credit Americas division, covering structured finance, ESG, Latin American & Canadian credit markets and investment-grade new issuances.