Search

The article offers business news briefs on topics including the first major corporate bonds issued by Argentinian bank Banco Hipotecario in the international markets, the housing production rate in the U.S., and a projected economic growth in Japan in 2016.

WASHINGTON -- The Federal Reserve announced an unconventional plan on Wednesday to reduce borrowing costs for businesses and consumers, trying once more to spur economic growth despite urgings from Republicans that it refrain from any expansion of its stimulus program. The Fed said that it would invest $400 billion in long-term Treasury securities over the next nine months, using money raised by selling its holdings of short-term federal debt, in an attempt to drive down interest rates on mortgage loans, corporate bonds and other forms of credit. [ABSTRACT FROM PUBLISHER]

The article presents a discussion about growth in government bond yields and corporate bonds in the U.S. in 2009. It notes that default rates, economic growth and movements in risk appetite are the main factors that affect corporate bonds. It asserts that yields of government bonds are still low. It suggests to invest in corporate bonds as the economy recovers.