Borrowing costs have become compelling, as markets are already pricing in expectations for reduced interest rates. And several external factors could reverse that trend.
The company expects its debt-to-EBITDA ratio to edge higher when it closes on an acquisition in about 18 months, but it has time to pay down debt before then.
"August lulled investors into tight spreads combined with ever-strong demand for credit. Issuers can borrow at rates we haven't seen in a couple of years."
On a three-month annualized basis, the core PCE price index advanced 1.7%, the slowest this year, reinforcing the wisdom of Fed interest rate cuts next month.
With FedNow, Real-Time Payments, Same-Day ACH, and other emerging products and services, treasurers should be evaluating a range of options for speeding up—and streamlining—payments.