November 29, 2022

UK corporations pay heavy value in creaking bond market

UK companies pay heavy price in creaking bond market

UK companies pay heavy price in creaking bond market

UK corporations are issuing bonds once more after the shock sparked by the “mini” Funds, however offers are sparse and buyers are demanding excessive returns — a worrying signal for the nation’s extra indebted debtors.

Northumbrian Water broke a six-week lull in UK company bond markets in late October. However even this regular, dependable utility firm needed to pay a yield of 6.585 per cent on its £400mn, 12-year bond — effectively above the two.375 per cent rate of interest the north-east firm paid…

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