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Companies Rush to Borrow Cash as US-Iran Deal Spurs Bullish Mood

Companies Rush to Borrow Cash as US-Iran Deal Spurs Bullish Mood
Key Points

Companies Rush to Borrow Cash as US-Iran Deal Spurs Bullish Mood US companies looked to offload more than $40 billion of debt in the credit markets on Monday, as they tried to capitalize on investor optimism after the US and Iran reached a tentative agreement to reopen the Strait of Hormuz. Borrowers from Nvidia Corp. to Qnity Electronics Inc. sought to capitalize on a rally across global markets as oil prices tumbled, stocks climbed and short-term Treasury yields fell, indicating lower...

Companies Rush to Borrow Cash as US-Iran Deal Spurs Bullish Mood US companies looked to offload more than $40 billion of debt in the credit markets on Monday, as they tried to capitalize on investor optimism after the US and Iran reached a tentative agreement to reopen the Strait of Hormuz. Borrowers from Nvidia Corp. to Qnity Electronics Inc. sought to capitalize on a rally across global markets as oil prices tumbled, stocks climbed and short-term Treasury yields fell, indicating lower expectations for US interest-rate hikes in the near term. Nvidia was set to be the biggest issuer in the investment-grade market, while Qnity brought one of the largest offerings to leveraged loan investors as prices on high-yield debt rose, driving yields lower.
US (LOCATION) Iran (LOCATION) the Strait of Hormuz (LOCATION) Nvidia Corp. (ORG) Qnity Electronics Inc. (ORG) Treasury (ORG) Nvidia (ORG) Qnity (PERSON)
Originally published by Bloomberg Markets Read original →