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Swap Rates Show Borrowing Costs for Five Years Lowest on Record

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.