Credit Chaos Leaves Debt-Hungry Companies Sweating on Bond Sales
- Companies need to meet with investors more as easy money ends
- Many credit committees aren’t used to such quick decisions
This article is for subscribers only.
Companies are set to raise the least new debt in more than a decade this year and there’s an unusual contributing factor: big swings in markets mean borrowing windows often shut before firms can begin to sell their bonds.
The trend is set to continue into 2023 because credit committees at some firms aren’t used to the levels of volatility, meaning demand can evaporate by the time they sign off on issuing securities, according to people with knowledge of the matter.