Cash-rich firms shun bonds, poor beg for loans

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By David Rothnie, Jon Hay, Silas Brown
19 Mar 2020

Corporate funding markets have been thrown into turmoil faster than anyone can remember by the aggressive onslaught of the coronavirus and government measures to put society in emergency shutdown. Borrowing costs have soared for all firms, but markets are not closed. As Jon Hay, David Rothnie and Silas Brown report, the coming weeks will sort those that can still raise cash from those that need rescuing.

The market moves shocked everyone, with equities in freefall many days, commercial paper choked, credit spreads ballooning and blue chips doing what seemed unthinkable just a fortnight ago and drawing down their revolving credit facilities.

Even after an unprecedented hail of government, central bank and intergovernmental measures to ...

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