For jumbo loans, short is sweet
That BG Group looks set to raise all its $14bn acquisition loan with just a one year maturity (plus a one year extension option) shows just how much in favour short term debt is in the loan market. Anxious banks do not want to bind themselves for too long to pricing that may become uneconomic if their own spreads widen again. Fortunately, what is good for the banks can occasionally be good for borrowers too.
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