The Marriner S. Eccles Federal Reserve building in Washington, D.C., on August 23, 2022. Photographer: Graeme Sloan/Bloomberg.
The surge of borrowing in the U.S. corporate debt market, on the surface, looks odd. Despite all the excitement about the Federal Reserve's long-awaited pivot toward easing monetary policy, it hasn't done so yet. In fact, its benchmark interest rate is still pinned at a more-than-two-decade high. But up and down corporate America, at blue-chip businesses and those heavily burdened by debts, executives are turning to Wall Street to borrow cash at a blistering pace.
It's the sort of stampede expected once the central bank is already slashing borrowing costs and actively trying to pump money into the economy. In this case, though, it reflects the swift repricing that's raced through the markets as traders get ahead of the Fed.
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