Economics
IOUs to Long Bonds Slide With Growth Imperiled: Credit Markets
This article is for subscribers only.
Corporate borrowers are pulling back from markets for everything from overnight commercial paper to the longest-maturity bonds as global economic growth is threatened while Europe struggles to contain its fiscal crisis.
The market for short-term IOUs in the U.S. slipped below $1 trillion for the first time since February in the week ended Oct. 5, Federal Reserve data show. Moline, Illinois-based Deere & Co. and natural-gas producer BG Energy Holdings Ltd. sold bonds as issuance worldwide fell 47 percent to $21.5 billion this week, according to data compiled by Bloomberg.