corporate debt

Should You Buy Floating-Rate Notes?

The yields offered by banks are laughable. This situation got several well-known companies thinking, "Let's sell debt to consumers who recognize and trust our brand, and offer interest rates on it that are slightly higher than these CDs and money markets." Thus, the "floating-rate demand note" was born.

Caterpillar to Issue Renminbi-Denominated Debt

Heavy equipment manufacturer Caterpillar is marketing a two-year 1 billion renminbi bond to institutional investors in Hong Kong. It's only the second multinational company to test the waters of the "dim sum" market, and its offering is five times the size of the first, a bond from McDonald's.

Beware: Credit Markets Are Getting Risky Again

Investors hungry for higher yields are flocking to the credit markets, putting junk-bond issuance on a record-setting pace. And lenders are loosening credit standards, while companies take on debt just because it's cheap. Here we go again?