Spreads for short-term unsecured corporate debt and Libor have surged over the past couple of months, reaching levels not seen since the 2008 financial crisis. The higher commercial paper rates will eventually draw in “crossover buyers” to take advantage of the higher rates. The spread between benchmark interest rates on three-month U.S. Treasuries has risen to a record high above 2.7%, according to data from Bloomberg News.
Spreads for short-term unsecured corporate debt and Libor have surged over the past couple of months, reaching levels not seen since the 2008 financial crisis. The spread between benchmark interest rates on three-month U.S. Treasuries has risen to a record high above 2.7%, according to data from Bloomberg News.