Borrowing is getting harder for companies as funding costs surge amid global inflation fears. The average yield on high-grade US corporate bonds topped 6% this week for the first time since 2023, with risk premiums at their highest in six months. Paramount Skydance Corp. sold about $50 billion of buyout debt, which weakened within hours, while Campbell’s Co. and Bain Capital Credit LP’s private credit fund faced lackluster demand.
Brazil’s MBRF Global Foods Co. SA delayed financing, and only four borrowers tapped the US high-grade bond market this week. Paramount’s CFO Dennis Cinelli called the debt decline “one-day choppiness,” emphasizing the deal’s transformative intent. Experts warn weak issuance could spill into 2027, with yields and market volatility weighing on demand despite long-term income potential attracting rate-sensitive investors.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing