It’s a Borrower’s Bond Market as Amazon Gets Record Low Rates
- Ralph Lauren, Comcast also able to sell debt at cheaper costs
- Supply has been endless, but demand is proving even stronger
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Bond investors are so confident the Federal Reserve has their backs, that in some cases they’re willing to lend for barely anything in return.
Amazon.com Inc. set record low interest rates in its $10 billion offering Monday, with bondholders agreeing to receive a coupon of just 40 basis points for debt due in three years. The internet giant drew strong enough demand to also set new lows on corporate debt due in seven, 10 and 40 years, according to data compiled by Bloomberg.