Would You Borrow From the Fed?

The U.S. investment-grade corporate bond primary market is better than it has ever been, with issuance coming at a record pace and rates near record lows. If an investment-grade company wants to sell a bond, it hires bankers, the bankers call up big bond investors and say “do you want to buy this bond,” the investors all say yes, and the bond is oversubscribed and sells at low interest rates. It is an easy and pleasant time to be a debt capital markets banker.

Now, though, those bankers will have a new complication, which is: Should they call up the Fed?