NewsDialy
A flood of bond issuance from large technology companies has raised borrowing costs in three foreign currency markets: Canadian dollars, Swiss francs, and sterling.
A bond is a loan a company takes from investors by selling a fixed-income instrument that pays regular interest over a set period. Amazon and Alphabet are among the companies driving the wave.
What happens when supply floods a credit market When a concentrated group of very large issuers brings a high volume of new bonds to market at once, investors hold the advantage.
They can demand higher yields, meaning higher interest payments per unit borrowed, before agreeing to buy.
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