In May, Google decided to make its maiden voyage in the debt market — issuing $3 billion in credit. The world's biggest search firm took advantage of cheap interest rates during a period that many experts believe may begin to wind down in June as the Federal Reserve begins to complete its emergency intervention in the economy.
At the end of June, the Fed is expected to end its asset purchase program, known as Quantitative Easing II. Google was able to issue its debt for 35 basis points over the Treasury rate. By purchasing securities, the Fed has kept interest rates low.
Google is hardly alone. Read the entire article in this week's Capital eBook (June 7) and find out why corporations are tapping the debt markets while they can, even if they don’t necessarily need the cash.
Additional stories in the Capital eBook:
That’s good news for vendors of risk management services who have been clamoring to get the ear of portfolio managers for years.
What would a Greek default look like? In absolute terms, it would set a record.
