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Debt Markets Bifurcate With Banks Hoarding Cash: Credit Markets

Record-low borrowing costs for the biggest U.S. companies such as Microsoft Corp. are failing to trickle down to Mel Hodges’s five-person computer consulting firm in Pennsylvania.

Microsoft, the world’s largest software maker, led at least $340 billion of U.S. corporate bond offerings this quarter, the busiest July-through-September period on record, according to data compiled by Bloomberg. Smaller businesses struggled as banks pared commercial and industrial lending 11.3 percent in the past year, Federal Reserve data show.