Wednesday, September 11, 2013
There are a number of companies selling debt at the moment, enough debt to shift prices. The article suggests that for many its now or never. Some of the companies don't even need to borrow money, they have funds, but borrowing is currently so so cheap. They need to get the debt out of the door before the tapering, but Bernanke might be swallowing a little on the hard side with this kind of caper, then raise rates, then there is capital flight from the emerging markets, they respond by dumping treasuries in defence, then Bernanke has to tighten even more. A kind of reverse leveraged monetary tightening. Meanwhile the UK economy leaps ahead.