Attention Economy


Wednesday, May 18, 2011

The Lure of Cheap Credit

In recent days, MIT and Norfolk Southern have issued 100 year bonds (with very reasonable spreads over 30 year US Treasury Bonds). There appears to be a rush to take advantage of this once in a lifetime opportunity to not just borrow but also to lock in extraordinarily low rates.
http://www.bloomberg.com/news/print/2011-05-18/norfolk-southern-follows-mit-with-400-million-offering-of-100-year-bonds.html