Companies with AA credit ratings are able to borrow at the lowest interest rate on record over five years, U.S. swap rates show.
The five-year swap rate, which serves as a benchmark for borrowing costs, dropped to 1.59 percent on Aug. 11, the lowest since Bloomberg began tracking the data in 1988. The rate was 1.66 percent today, compared with a yield on 1.44 percent for five-year Treasuries. The difference between the rate to exchange floating- for fixed-interest payments and Treasury yields for five years, known as the swap spread, widened 1.25 basis points to 22.38 basis points.
