1. Corporations are borrowing less money because they are cutting spending on facilities, expecting an economic downturn. 2. Higher interest rates would make it more expensive for corporations to borrow, which could hurt their earnings. 3. Individuals borrow money to buy houses and corporations borrow to invest in plants. 4. Lower rates are considered good for stocks because they can maximize profits by making it cheaper for corporations to borrow. 5. Lower rates boost company earnings and make it cheaper for corporations to borrow. 6. More corporations are borrowing money by selling notes and bonds while more consumers are turning to mortgage brokers and car makers for loans to buy houses and vehicles. 7. Similarly, a multinational corporation could borrow money in one currency with an option to pay it back in another. 8. Still, some U.S. corporations are borrowing in Japan. 9. The high price investors are putting on corporate debt has also enabled more corporations to borrow this year. 10. The strong demand for bonds means that corporations can borrow at low rates relative to benchmark Treasuries. |