Investment-Grade Firms Find It Cheaper to Sell Debt.

The article reports that highly rated companies are finding that it is less expensive to sell new debt in the corporate bond market than before the credit crisis. Such companies have had to offer large risk premiums on their debt to attract investors, but the U.S. Federal Reserve's two rate reductions and the large drop in Treasury yields have offset the increase in risk premiums. Yields on investment-grade corporate date average 5.7% compared to 6.1% before the onset of the credit crunch.